Dividend Stocks

As it continues to be a bear market, now’s the time to take a look at dividend stocks. No one can predict when exactly market conditions will again become favorable. Some commentators may suggest we’ve reached a bottom, but others are arguing that there’s more volatility ahead.

That’s why one of the best moves you can make in the meantime is to load up on high-quality names, offering both yield and long-term growth potential. To do this, you can go with some of the popular dividend stocks. Alongside this, however, there are a few more under-the-radar plays you should consider.

Not widely followed, many of them are great opportunities, hiding in plain sight. This includes the following dividend stocks. All seven of them earn an “A” rating in my Dividend Grader, stand to see meaningful price appreciation over a long timeframe and currently trade for $25 per share or less. Consider today the perfect time to enter a position in any of them.

Ticker Company Current Price
BCBP BCB Bancorp $18.16
CMRE Costamare $12.69
NGVC Natural Grocers by Vitamin Cottage $16.44
NL NL Industries $9.26
SAMG Silvercrest Asset Management Group $18.85
SJT San Juan Basin Royalty Trust $13.42
TRIN Trinity Capital $15.81

BCB Bancorp (BCBP)

Rising interest rates may be bad news for the economy and the stock market overall. Yet for New Jersey-based regional bank BCB Bancorp (NASDAQ:BCBP), rising rates are a tailwind rather than a headwind. An increase in interest rates means an increase in net interest margins.

That’s not the only reason to like BCBP stock. Even after surging nearly 19% year-to-date, shares continue to sport a reasonable valuation. It trades for 8.6x estimated 2022 earnings at today’s prices.

It also offers a 3.22% dividend yield. This dividend is well-covered with a payout ratio of 29.25%. The bank also has a history of return capital to shareholders via share repurchases. This is another way management can help boost the value of the stock over time. While it may be a while before shares make another 30% move, consider it a buy, now or on any weakness.

This stock earns an “A” rating in my Dividend Grader.

Costamare (CMRE)

Costamare (NYSE:CMRE) is another situation where a headwind for most (supply chain bottlenecks) is a tailwind for it. Headquartered in Monaco, this company owns and charters containerships around the world.

The run-up in shipping prices, due to high demand, has resulted in a big jump for this shipper’s earnings since 2021. This, in turn, has resulted in a solid lift in the price of CMRE stock. However, don’t worry about “missing the boat” on this opportunity. There are several reasons why it remains a buy.

Despite its double-digit year-to-date gains, shares remain cheap on a price-to-earnings (P/E) basis. The stock’s forward P/E today stands at around 3.9x. It also offers a solid yield at todays prices (3.17%). To top it all off, its move into dry bulk shipping could be a catalyst for future gains. Put simply, Costamare offers yield, value and growth potential.

This stock earns an “A” rating in my Dividend Grader.

Natural Grocers by Vitamin Cottage (NGVC)

As its corporate name suggests, Natural Grocers by Vitamin Cottage (NYSE:NGVC) operates a chain of organic/natural foods grocery stores. The Lakewood, Colorado based company has 162 locations in 20 U.S. states. Yes, retail, including food retail, has had to contend with soaring inflation since last year.

Yet while this is a risk for grocery store margins, so far this grocer has been able to counter this. Last fiscal quarter, it actually saw its operating margins improve, by 70 basis points (0.7%), to 3.3%. Quarterly earnings-per-share (EPS) were up by a third year-over-year.

NGVC stock trades at a more-than-fair valuation (18.3x earnings) given its prospects. It also has a forward dividend yield of 2.28%. Last month, like many other retailer stocks, it was pushed lower by the above-mentioned inflationary pressure fears. A likely overreaction, take advantage of this recent pullback.

This stock earns an “A” rating in my Dividend Grader.

NL Industries (NL)

Holding company NL Industries (NYSE:NL) consists of two main assets. First, its 30% of chemical company Kronos Worldwide (NYSE:KRO). This stake is worth around $657 million based on Kronos’ current stock price. Second, it also owns a 87% stake in engineered components maker CompX International (NYSEAMERICAN:CIX).

This position is worth around $242.4 million based on CompX’s current stock price. Compare this to its market capitalization ($436.3 million), and you can see NL stock trades at a discount to its breakup value. It also has a solid forward dividend yield of 3.13%.

Shares have been a tear lately, largely on the heels of KRO stock running up in price. But even if enthusiasm for Kronos cools in the short-term, you may still want to take a look at NL Industries. A value stock with yield, this is definitely a more under-the-radar dividend stock to consider.

This stock earns an “A” rating in my Dividend Grader.

Silvercrest Asset Management Group (SAMG)

Looking for a stock with a history of steady earnings and dividend growth? Silvercrest Asset Management Group (NASDAQ:SAMG) is one to add to your watchlist.

This New York-based wealth management firm provides financial advisory and family office services. It has successfully increased its asset under management (AUM), and therefore its revenue and earnings, over the past few years. SAMG has also raised its dividend (forward yield 3.14%) five years in a row, with an average dividend growth rate during this timeframe of 6.9%.

Far from trading for a premium price, SAMG stock instead trades for just 12.6x earnings. Like some of the dividend stocks mentioned above, shares have performed strongly this year, by a wide margin. The stock is up 11% in 2022, all while major indices are in the red. Nevertheless, with further earnings growth in the forecast, it stands to continue performing well.

This stock earns an “A” rating in my Dividend Grader.

San Juan Basin Royalty Trust (SJT)

If your focus is on yield, and you’re bullish on oil prices, San Juan Basin Royalty Trust (NYSE:SJT) is a solid choice. As you would expect from its name, it owns royalty interests in oil and gas properties located in New Mexico’s San Juan basin.

This pass-through entity then pays out these royalties, in the form of distributions. That means a very high yield for SJT stock during boom times for oil, for example what we are seeing play out today. Naturally, as oil at levels last seen more than a decade ago, its distribution rate (8.2%) has skyrocketed, and so has its stock price.

It’s up nearly 116% so far in 2022. Still, while a pullback in oil prices would be bad news for those buying today, limited supply and robust demand (despite the pain at the pump) point to hydrocarbon prices staying high for some time.

This stock earns an “A” rating in my Dividend Grader.

Trinity Capital (TRIN)

When it comes to Business Development Companies (BDCs), investors have a lot of choices, but one in particular of interest may be Trinity Capital (NASDAQ:TRIN). Like other BDCs, it’s a pass-through entity, paying out interest and gains from providing financing to small and mid-sized businesses (SMBs).

This BDC, however, focuses on venture lending rather than lending to more mature SMBs. Finding success in this niche, since its 2021 stock market debut, TRIN stock has provided investors both a high and growing dividend (forward yield of 8.39%), and until recently, price appreciation.

The tech stock sell off has put pressure on shares, wiping out most of its post-IPO gains. This sell-off, however, is a great opportunity to initiate a position. Trading for just a slight premium to book value, and with the steady returns from its venture lending portfolio, Trinity Capital could provide solid returns.

This stock earns an “A” rating in my Dividend Grader.

On the date of publication, Louis Navellier has a position in CMRE. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

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