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Interested in following smaller companies? Interested in stocks paying dividend income? Interested in companies with high liquidity? Are you after stocks that analysts are calling 'buy' or 'strong buy'? For ideas on how to start your own search, we ran a screen.

The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.

The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).

We first looked for small cap dividend stocks. We then screened for businesses that have strong liquidity (Current Ratio>2)(Quick Ratio>2). We then looked for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). We did not screen out any sectors.

Do you think these small-cap stocks will continue to see such strong profitability? Use our list to help with your own analysis.

1) Healthcare Services Group Inc. (HCSG)

Sector:Services
Industry:Business Services
Market Cap:$1.32B
Beta:0.62

Healthcare Services Group Inc. has a Dividend Yield of 3.29% and Payout Ratio of 109.51% and Current Ratio of 5.04 and Quick Ratio of 4.48 and Analysts' Rating of 1.80. The short interest was 7.09% as of 05/28/2012. Healthcare Services Group, Inc., together with its subsidiaries, provides housekeeping, laundry, linen, facility maintenance, and dietary services to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States. It operates in two segments, Housekeeping and Dietary. The Housekeeping segment offers cleaning, disinfecting, and sanitizing of patient rooms and common areas of client's facility, as well as laundering and processing the personal clothing belonging to the facility's patients.

2) NTELOS Holdings Corp. (NTLS)

Sector:Technology
Industry:Wireless Communications
Market Cap:$401.10M
Beta:0.84

NTELOS Holdings Corp. has a Dividend Yield of 8.88% and Payout Ratio of 169.26% and Current Ratio of 2.20 and Quick Ratio of 2.07 and Analysts' Rating of 1.90. The short interest was 1.95% as of 05/28/2012. NTELOS Holdings Corp., through its subsidiaries, provides wireless communications services to consumers and businesses primarily in Virginia and West Virginia, as well as parts of Maryland, North Carolina, Pennsylvania, Ohio, and Kentucky. It primarily offers wireless digital personal communications services, such as wireless voice and data products and services, and roaming/travel services under the NTELOS Wireless brand name. The company also provides wholesale network services to Sprint Nextel in the western Virginia and West Virginia area for various Sprint CDMA wireless customers.

3) Kaydon Corporation (KDN)

Sector:Industrial Goods
Industry:Machine Tools & Accessories
Market Cap:$727.63M
Beta:1.40

Kaydon Corporation has a Dividend Yield of 3.52% and Payout Ratio of 51.46% and Current Ratio of 4.40 and Quick Ratio of 2.40 and Analysts' Rating of 2.40. The short interest was 6.06% as of 05/28/2012. Kaydon Corporation engages in the design, manufacture, and sale of custom engineered, performance-critical products in the United States, Germany, and internationally. The company's Friction Control Products segment offers anti-friction bearings, split roller bearings, and specialty balls that are used in alternative energy, specialized robotics, medical, aerospace, defense, security, electronic, material handling, construction, and other industrial applications. Its Velocity Control Products segment provides industrial shock absorbers, safety shock absorbers, velocity controls, gas springs, and rotary dampers for use in specialized robotics, material handling, machine tool, medical, amusement, and other industrial applications.

4) Universal Corp. (UVV)

Sector:Consumer Goods
Industry:Tobacco Products, Other
Market Cap:$1.06B
Beta:0.93

Universal Corp. has a Dividend Yield of 4.30% and Payout Ratio of 58.40% and Current Ratio of 4.31 and Quick Ratio of 2.43 and Analysts' Rating of 2.00. The short interest was 12.71% as of 05/28/2012. Universal Corporation, through its subsidiaries, operates as a leaf tobacco merchant and processor primarily in North America, South America, Africa, Europe, and Asia. It engages in selecting, buying, processing, packing, storing, supplying, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products. The company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Its flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes; and dark air-cured tobaccos are used in the manufacture of cigars, pipe tobacco, and smokeless tobacco products.

5) Computer Programs & Systems Inc. (CPSI)

Sector:Technology
Industry:Healthcare Information Services
Market Cap:$626.33M
Beta:0.42

Computer Programs & Systems Inc. has a Dividend Yield of 3.25% and Payout Ratio of 65.25% and Current Ratio of 2.84 and Quick Ratio of 2.74 and Analysts' Rating of 1.80. The short interest was 7.25% as of 05/28/2012. Computer Programs and Systems, Inc., a healthcare information technology company, designs, develops, markets, installs, and supports computerized information technology systems to small and midsize hospitals in the United States. Its enterprise-wide system automates the management of clinical and financial data across the primary functional areas of a hospital. The company offers services that enable customers to outsource certain data-related business processes in the areas of clinical care, revenue cycle management, cost control, and regulatory compliance.

*Company profiles were sourced from Finviz. Financial data was sourced from Google Finance and Yahoo Finance.

Source: 5 Small Cap Dividend Stocks With Plenty Of Cash And Analyst Love