5 Analyst-Backed Small Cap Consumer Dividend Stocks Flush With Cash

by: ZetaKap

Not everyone prefers high yields, high stakes investing. Some have a disposition that prefers reliable and consistent payouts. To find dividend stocks of this nature we first searched specifically for consumer dividends that are flush with cash. When a company has liquidity they can fund strategies to grow as well as sustain current operations. We then chose those with a rating of 'Buy' or 'Strong Buy' from analysts. Take a look to see if any of these dividends pique your interest.

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 consumer dividend stocks. From here, we then looked for companies that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). From here, we then looked for companies with a large amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We did not screen out any market caps.

Do you think these stocks hold value that has yet to be priced in? Use our screened list as a starting point for your own analysis.

1) Universal Corp. (UVV)

Sector: Consumer Goods
Industry: Tobacco Products, Other
Market Cap: $1.03B
Beta: 0.92

Universal Corp. has a Dividend Yield of 4.43%, a Payout Ratio of 58.22%, a Analysts' Rating of 2.00, a Current Ratio of 4.31, and a Quick Ratio of 2.43. The short interest was 12.45% as of 08/03/2012. Universal Corporation, through its subsidiaries, operates as a leaf tobacco merchant and processor worldwide. It engages in selecting, procuring, processing, packing, storing, 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. Flue-cured, burley, and oriental tobaccos are principally used in the manufacture of cigarettes; and dark air-cured tobaccos are used primarily in the manufacture of cigars, pipe tobacco, and smokeless tobacco products.

2) True Religion Apparel Inc. (TRLG)

Sector: Consumer Goods
Industry: Textile - Apparel Clothing
Market Cap: $530.50M
Beta: 1.51

True Religion Apparel Inc. has a Dividend Yield of 3.89%, a Payout Ratio of 11.10%, a Analysts' Rating of 2.30, a Current Ratio of 8.26, and a Quick Ratio of 6.71. The short interest was 9.73% as of 08/03/2012. True Religion Apparel, Inc. designs, develops, manufactures, markets, distributes, and sells apparel in North America, Europe, Asia, Australia, Africa, and South America. It offers fashion jeans and related sportswear apparel. The company provides various products for men, women, and children, including denim jeans; corduroy pants and jackets; cotton, twill, linen, and velvet pants and jackets; fleece sweat suits and hooded sweatshirts; sweaters; skirts; knit shirts; T-shirts; shorts; and sportswear.

3) Hooker Furniture Corp. (HOFT)

Sector: Consumer Goods
Industry: Home Furnishings & Fixtures
Market Cap: $127.32M
Beta: 1.71

Hooker Furniture Corp. has a Dividend Yield of 3.39%, a Payout Ratio of 77.90%, a Analysts' Rating of 2.00, a Current Ratio of 5.70, and a Quick Ratio of 4.06. The short interest was 6.82% as of 08/03/2012. Hooker Furniture Corporation, a home furnishings marketing and logistics company, together with its subsidiaries, designs, develops, imports, manufactures, and markets residential wood, metal, and upholstered furniture products in North America. The company offers casegoods products, including home entertainment, home office, accent, dining, and bedroom furniture under the Hooker Furniture, Envision, and Opus Designs by Hooker brand names; upholstered furniture under the Bradington-Young, Seven Seas, and Sam Moore brand names; upscale motion and stationary leather furniture; youth furniture under the Opus Designs by Hooker brand name; and private label products. It also offers various residential leather and fabric upholstered furniture under the Bradington-Young and Seven Seas upholstery brand; specializes in leather reclining and motion chairs, sofas, club chairs, and executive desk chairs; and offers upscale occasional chairs and other seating under the Sam Moore upholstery brand. The company serves retailers of residential home furnishings, including independent furniture stores, specialty retailers, department stores, catalog and Internet merchants, interior designers, and national and regional retail chains.

4) Orchids Paper Products Company (TIS)

Sector: Consumer Goods
Industry: Paper & Paper Products
Market Cap: $125.90M
Beta: 0.55

Orchids Paper Products Company has a Dividend Yield of 4.78%, a Payout Ratio of 57.69%, a Analysts' Rating of 1.80, a Current Ratio of 3.32, and a Quick Ratio of 2.12. The short interest was 3.75% as of 08/03/2012. Orchids Paper Products Company engages in the manufacture and sale of various private label tissue products for the consumer market. Its products include paper towels, bathroom tissue, and paper napkins. The company offers its products under various brand names, such as Colortex, My Size, Velvet, Big Mopper, Soft & Fluffy, Tackle, Nobel, and care.

5) Ennis Inc. (EBF)

Sector: Consumer Goods
Industry: Office Supplies
Market Cap: $365.58M
Beta: 1.46

Ennis Inc. has a Dividend Yield of 5.01%, a Payout Ratio of 70.01%, a Analysts' Rating of 1.00, a Current Ratio of 5.21, and a Quick Ratio of 2.25. The short interest was 3.26% as of 08/03/2012. Ennis, Inc., together with its subsidiaries, engages in the print and manufacture of business forms and other business products. The company operates in two segments, Print and Apparel. The Print segment designs, manufactures, and sells business forms and other printed business products.

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

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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