5 Small-Cap Dividend Stocks With High Payout Ratio – (ARR, SAN, WEN, PDLI, CY)

For those who do not know about dividend payout ratio, this is a ratio which measures the percentage of a company’s earnings that are distributed among shareholders as dividends. When a company reports net income, it has the option to reinvest that profit into the business with an aim to grow and expand the company or pay part of that profit to shareholders as dividends.

A company’s payout ratio can be used to determine various characteristics and its operations. Small fast-growing companies are more likely to put back much of their profit in the business for expansion and growth. These companies normally have a low or no payout ratio.

A low payout ratio can also reveal that a company’s dividend is small relative to its profit, suggesting that the dividend is likely to be secure and reliable. Large slow-growth companies, or companies like utility companies, tend to distribute a greater part of earnings as dividends to shareholders, therefore, will have a higher payout ratio.

ARMOUR Residential REIT, Inc (NYSE:ARR) annual dividend yield stands at 16.02% and maintains a dividend payout ratio of 389.95%. The stock has a dividend of $1.20 annually. ARR shares traded in the range of $5.40 – $7.98 in the last 52 weeks.

Banco Santander, S.A. (ADR) (NYSE:SAN) provides a range of banking and financial products. It offers various deposit products, such as demand and time deposits, and savings and current accounts. Banco Santander, S.A. pays a dividend of $0.81 annually. The company has an annual dividend yield of 12.51% and has a dividend payout ratio at 130.44%. Shares of SAN have been floating in the range of $4.88 – $9.59 in the last 52 weeks.

The Wendy’s Company (NASDAQ:WEN) has an annual dividend of $0.08 while keeping its dividend yield at 1.80%. The company maintains a dividend payout ratio of 104.20%. Shares of WEN have been trading in the range of $4.29 – $5.58 in last 52 weeks. WEN through its subsidiaries, operates and franchises Wendy’’s quick service restaurants.

PDL BioPharma Inc (NASDAQ:PDLI) engages in intellectual property asset management and royalty bearing assets investment activities. PDL BioPharma Inc pays a dividend of $0.60 annually. The stock has an annual dividend yield of 8.49% and maintains a dividend payout ratio of 52.76%. Shares of PDLI have been floating in the range of $5.15 – $7.11 in the last 52 weeks.

Cypress Semiconductor Corporation (NASDAQ:CY) shares have been trading in the range of $10.21 – $20.50 in the last 52 weeks. The company pays a dividend of $0.44 annually and has a dividend payout ratio of 107.07%. The stock maintains an annual dividend yield of 3.69%. CY designs, develops, manufactures, and markets mixed-signal and programmable solutions worldwide.

 Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.