4 Highly Liquid Dividend Paying Micro Caps Set For Growth

Includes: EBF, FRS, HOFT, MPR
by: ZetaKap

When it comes to investing, we all have short and long term goals. Sometimes we want to see immediate results, and other times we are focused on the bigger picture. Investing in dividend stocks tends to fulfill both needs because of the payouts that provide income on a regular basis. However, that satisfaction is highly dependent upon a company's ability to maintain attractive yields over time. For our list of dividend stocks today we began our search by focusing on moderate to high yielders. We then looked for traits that point to stability and growth. In this case, all of the companies listed below have a high level of liquidity and projected EPS growth rates above 25% for the coming year. If needed, these companies can access their cash reserves to keep the growth on a steady upward trend. We think you will find our list of dividend stocks worthy of a deeper look.

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

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 dividend stocks. Next, we then screened for businesses with projected high growth, measured by 1-year projected EPS growth above 25%. 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 or sectors.

Do you think these stocks have more value to price in? Please use our list to assist with your own analysis.

1) Frisch's Restaurants Inc. (NYSEMKT:FRS)

Sector Services
Industry Restaurants
Market Cap $106.96M
Beta 0.56
Click to enlarge

FRS stock chart

Key Metrics

Dividend Yield 3.06%
Payout Ratio 53.58%
1-Year Projected Earnings Per Share Growth Rate 39.02%
Current Ratio 2.70
Quick Ratio 2.45
Short Interest 3.55%
Click to enlarge

Frisch's Restaurants, Inc., together with its subsidiaries, operates restaurants in the United States. The company operates its full service family-style restaurants under the Frisch's Big Boy name in various regions of Ohio, Kentucky, and Indiana. As of July 25, 2012, it operated 93 restaurants, as well as licensed 25 restaurants to other operators. Frisch's Restaurants, Inc. was founded in 1923 and is headquartered in Cincinnati, Ohio.

2) Hooker Furniture Corp. (NASDAQ:HOFT)

Sector Consumer Goods
Industry Home Furnishings & Fixtures
Market Cap $139.86M
Beta 1.72
Click to enlarge

HOFT stock chart

Key Metrics

Dividend Yield 3.07%
Payout Ratio 80.36%
1-Year Projected Earnings Per Share Growth Rate 63.79%
Current Ratio 5.87
Quick Ratio 3.90
Short Interest 6.39%
Click to enlarge

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 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. It sells its products directly, as well as through independent sales representatives. Hooker Furniture Corporation was founded in 1924 and is headquartered in Martinsville, Virginia.

3) Met-Pro Corp. (NYSE:MPR)

Sector Industrial Goods
Industry Diversified Machinery
Market Cap $133.83M
Beta 0.96
Click to enlarge

MPR stock chart

Key Metrics

Dividend Yield 3.12%
Payout Ratio 58.66%
1-Year Projected Earnings Per Share Growth Rate 27.45%
Current Ratio 4.73
Quick Ratio 3.52
Short Interest 2.74%
Click to enlarge

Met-Pro Corporation manufactures and sells product recovery and pollution control equipment for the purification of air and liquids, fluid handling equipment, and filtration and purification products. The company markets and sells its products through its personnel, distributors, representatives, agents, regional sales managers, market-based distributors, and original equipment manufacturers in the United States and internationally. Met-Pro Corporation was founded in 1966 and is headquartered in Harleysville, Pennsylvania.

4) Ennis Inc. (NYSE:EBF)

Sector Consumer Goods
Industry Office Supplies
Market Cap $440.37M
Beta 1.47
Click to enlarge

EBF stock chart

Key Metrics

Dividend Yield 4.16%
Payout Ratio 70.01%
1-Year Projected Earnings Per Share Growth Rate 67.91%
Current Ratio 5.21
Quick Ratio 2.25
Short Interest 2.80%
Click to enlarge

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 company, formerly known as Ennis Business Forms, Inc., was founded in 1909 and is headquartered in Midlothian, Texas.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/27/2012.

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

Business relationship disclosure: This article was prepared for ZetaKap Media by one of our full-time analysts. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.