Huge Dividend, Strong Trend, and Under Book Value

09/26/2012 8:00 am EST


The staff at highlight a stock in a strong uptrend, with strong volume, a large dividend percentage, all for less than book value.

Kohlberg Capital (KCAP) has been named as a top ten dividend-paying financial stock according to Dividend Channel, which published its most recent DividendRank report.

The report noted that among shares of financial companies, KCAP displayed both attractive valuation metrics and strong profitability metrics. Here is a recent daily chart:

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The stock has had a nice run since early June with strong volume. In terms of the dividend, the recent KCAP share price of around $9.36 represents a price-to-book ratio of 1.2 and an annual dividend yield of 10.26%—by comparison, the average stock in Dividend Channel's coverage universe yields 3.6% and trades at a price-to-book ratio of 1.9.

The report also cited the strong quarterly dividend history at KCAP, and favorable long-term multi-year growth rates in key fundamental data points.

The report stated: "Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest, most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research."

The current annualized dividend paid by KCAP is 96 cents/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of October 5.

This article was written by the staff at

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