Investing in small-cap stocks can be a lucrative opportunity for growth and stability in a diverse market. Three standout companies across different sectors offer unique investment potential for savvy investors.
The first company, Ardmore (ASC), stands out with its solid dividend policy and earnings performance, showcasing a commitment to maximizing value. In Q1 2024, Ardmore reported adjusted earnings of $38 million, or 92 cents per share, and continues to pay out one-third of adjusted earnings as dividends. With strong performance from its MidRange (MR) Eco-Design tankers, Ardmore is poised to capitalize on favorable market conditions.
Newlake (NLCP) is another small-cap stock worth considering, with continuous dividend increases indicating a focus on market value. The company’s strong portfolio, debt-free status, and ample cash reserves position it well for growth and strategic investments. Newlake’s stable financial profile and flexible credit facility provide room for expansion and capital deployment.
Lastly, Blue Owl (OBDC) boasts a solid portfolio with a weighted average EBITDA above $180 million and a low average loan-to-value ratio. The company’s proactive risk management and careful credit selection have resulted in a low nonaccrual rate and strong interest coverage ratio. With $2.4 billion in liquidity, Blue Owl has ample resources for future investments and a positive outlook from rating agencies.
In conclusion, these small-cap stocks present promising growth opportunities and stability in a volatile market. Investors looking for diversification and potential returns may find value in Ardmore, Newlake, and Blue Owl.