Investors across the board have varying tastes and investment strategies. However, one thing they all have in common is the goal of reaping profits. A great way to see gains is to combine the Zacks Rank with dividends. That way, not only are you seeing rising earnings estimates, but you are being paid back nicely for your investment in the form of solid dividends.
Fortunately, we have several stocks that meet these criteria and could be interesting selections for investors, and best of all, the three stocks outlined below all are trading at less than $20/share too. So if you are looking for more bang for your buck, consider the trio below as they all have dividend yields over 3% and rising earnings estimates as well:
Saratoga Investment (NYSE:SAR)
Saratoga Investment Corporation is a specialty finance company that focuses on investing in leveraged loans and mezzanine debt issued by US companies. Saratoga engages in direct lending. It also participates in loan syndicates.
Saratoga Investment Corp. has upgraded in the last week, from a Zacks Rank #2 (Buy) to a Zacks Rank #1 (Strong Buy). SAR gives out a strong dividend, which yields 5.57%. Expect less volatile trading with SAR, as it has a beta of 0.71. The company also has a favorable PE ratio of 9.16, compared to the industry average, which is a PE of 16.
Our EPS consensus for the current quarter is $0.45. The actual EPS has a favorable chance at beating our consensus for the quarter, as it has posted positive EPS beats in each of the last 3 quarters. The most recent quarter posted a beat by 26.19%. Saratoga reports its earnings on 5/26/15.
Summit Hotels (NYSE:INN)
Summit Hotels is a REIT; real estate investment trust. The company specializes in owning and financing hotel real estate. The company’s properties branded within upscale hotels like Hyatt (NYSE:H), Marriott (NASDAQ:MAR), Hilton (NYSE:HLT), and more.
Summit Hotels has been upgraded from 7 days ago, going from a Zacks Rank #2 (Buy) to a Zacks Rank #1 (Strong Buy). The company gives out a nice dividend yield of 3.45%. The REIT has an outstanding PEG ratio of 0.85, suggesting that the growth rate is more than in line with the current price.
Our consensus EPS estimate for the quarter is $0.18. However, there is a likely chance that Summit Hotels will beat our consensus estimate, as it has in each of the last 4 quarters. INN reports its earnings on 3/16/15.
PennantPark (NASDAQ:PNNT)
PennantPark Investment Corporation is an investment company that generates income through debt and equity investments. They prefer to invest in US middle market private companies in the form of loans, mezzanine debt, and equity investments. They typically invest in companies that are highly leveraged.
PennantPark Investment Corporation is currently a Zacks Rank #1. It doles out a massive dividend of 7.83%, and has a beta of 0.62. The company has a PE of 10.87, about half of the industry average, which is 22.60.
This is an important valuation, as it indicates that PennantPark stock price is not as inflated as some of its peers. Our EPS consensus for the quarter is $0.30. It is worth noting that PFLT has beaten our earnings consensus in each of the last two quarters by at least 20%. PennantPark posts its earnings on 5/14/15.