Small capitalized stocks with a strong growth and good dividends originally published at "long-term-investments.blogspot.com". Everybody loves growth. If you own an investment and it starts to grow by double-digit rates over a few years, when the stock price explode and you feel like a bird in heaven. I felt a few times like this. But it is also necessary that you sell partly your position over the time. I personally reduce my stocks positions when they have doubled or more. Certainly you can't get very rich with this rule but you hedge your stock gains and believe me by selling stocks with gains, nobody become poor.
I recently viewed a nice list at Forbes. The list was a research result of the 100 best small cap growth stocks in America. Stocks from the table are public and tradeable in America. They all have a total sales volume below the USD 1 billion mark and fantastic years of recent growth. As you can see at the list, the GDP growth is America is still weak but out there are still investment opportunities to discover.
I discovered the ten best dividend stocks from the small cap growth picks. I needed to screen more than 50 companies in order to find ten stocks with positive dividend payments. As you can see most of the small cap growth stocks don't pay dividends. But the debt situation is very comfortable. Most of them are free of debt and have bigger cash amounts to their balance sheets in order to finance future growth.
Take a closer look at the full table. The average P/E ratio amounts to 22.64 and forward P/E ratio is 17.02. The dividend yield has a value of 2.68 percent. Price to book ratio is 5.03 and price to sales ratio 4.42. The operating margin amounts to 29.98 percent. The average stock has a debt to equity ratio of 0.17.
Here is the full table with some fundamentals:
Related stock ticker symbols:
RGR, QCOR, SYNT, STRA, FF, QSII, RGLD, MLAB, FDS, KEYN