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Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, although this comes with its fair share of added risk. Are you looking for small-caps? Do you like to be able to rely on a stock's dividend income as a source of return? Do you prefer investing in stocks that analysts have weighed in on? Do you prefer companies with strong profits? If yes, here are a few ideas to start your search.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. EPS growth rates help investors identify stocks that are increasing or decreasing in profitability. This profitability metric is generally a key driver in the price of the stock as it directly correlates to the profitability of the company as a whole.

The Net Margin is a profitability metric that illustrates, by percentage, how much of every dollar earned gets turned into a bottom line profit. This is just one of many profitability metrics used by investors and analysts to better understand what the company is being left with at the end of the day. Generally, a firm that can expand its net profit margins over a period of time will see its stock price rise as well due to the trend of increasing profitability. Net Margin = Net Income/Total Revenue.

We first looked for small cap stocks that have a very high dividend yield (Div. Yield > 10%). We next screened for businesses that analysts rate as "Buy" (2 < mean recommendation < 3). Next, we then screened for businesses that have posted strong earnings growth for shareholders over an extended period of time (1-year fiscal EPS growth rate>10%)(Net Margin [TTM]>10%). We did not screen out any sectors.

Do you think these small-cap stocks are undervalued and have room to trade higher? Use our list to help with your own analysis.

1) Capstead Mortgage Corp. (NYSE:CMO)

Sector:Financial
Industry:REIT - Diversified
Market Cap:$1.25B
Beta:0.47

Capstead Mortgage Corp. has a Dividend Yield of 12.83% and Payout Ratio of 103.18% and Analysts' Rating of 2.20 and Earnings Per Share Growth Rate of 15.07% and Net Margin of 66.67%. The short interest was 4.36% as of 05/18/2012. Capstead Mortgage Corporation operates as a self-managed real estate investment trust. It invests in leveraged portfolio of residential mortgage pass-through securities consisting of adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises or by an agency of the federal government. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.

2) Mid-Con Energy Partners, LP (NASDAQ:MCEP)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$330.54M
Beta:-

Mid-Con Energy Partners, LP has a Dividend Yield of 10.23% and Payout Ratio of - and Analysts' Rating of 1.60 and Earnings Per Share Growth Rate of 1624.43% and Net Margin of 42.42%. The short interest was 0.16% as of 05/18/2012. Mid-Con Energy Partners, LP engages in the acquisition, exploitation, development, and production of oil and natural gas properties in North America. Its principal areas of operation are located in southern Oklahoma, northeastern Oklahoma, and parts of Oklahoma and Colorado within the Hugoton basin in the Mid-Continent region of the United States. The company owns a 68% average working interest in 296 gross producing (195 net) wells; 141 gross injection (93 net) wells; and 33 gross (29 net) wells shut-in or waiting on completion.

3) Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI)

Sector:Financial
Industry:REIT - Diversified
Market Cap:$324.80M
Beta:-

Apollo Commercial Real Estate Finance, Inc. has a Dividend Yield of 10.13% and Payout Ratio of 107.95% and Analysts' Rating of 2.10 and Earnings Per Share Growth Rate of 58.15% and Net Margin of 52.82%. The short interest was 3.88% as of 05/18/2012. Apollo Commercial Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It originates, acquires, invests in, and manages performing commercial first mortgage loans, commercial mortgage-backed securities, mezzanine financings, and other commercial real estate-related debt investments. The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code.

4) PennyMac Mortgage Investment Trust (NYSE:PMT)

Sector:Financial
Industry:REIT - Residential
Market Cap:$303.61M
Beta:-

PennyMac Mortgage Investment Trust has a Dividend Yield of 12.20% and Payout Ratio of 73.68% and Analysts' Rating of 1.80 and Earnings Per Share Growth Rate of 67.86% and Net Margin of 48.01%. The short interest was 3.49% as of 05/18/2012. PennyMac Mortgage Investment Trust is based in the United States.

5) QR Energy, LP (NYSE:QRE)

Sector:Basic Materials
Industry:Independent Oil & Gas
Market Cap:$486.78M
Beta:-

QR Energy, LP has a Dividend Yield of 11.44% and Payout Ratio of 420.63% and Analysts' Rating of 1.70 and Earnings Per Share Growth Rate of 160.19% and Net Margin of 38.22%. The short interest was 0.41% as of 05/18/2012. QR Energy, LP, through its subsidiary, QRE Operating, LLC, engages in the acquisition, exploitation, development, and production of onshore crude oil and natural gas properties in the United States. As of December 31, 2011, its properties consisted of working interests in 3,867 gross producing wells located in Texas, New Mexico, Arkansas, Louisiana, southwestern Kansas, Oklahoma, Florida, and Alabama. It also had estimated net proved reserves of 34.

*Company profiles were sourced from Finviz.

Source: 5 High Profit, High Yield Small Cap Dividend Stocks That Analysts Rate As Buy