It's a truism that mid-cap stocks get no respect. Overlooked in favor of the bigger names that dominate the investing headlines - and the high flying small caps that make fortunes for insiders and investors alike - mid-caps are one segment of the investment world that undoubtedly require more attention.
With that virtuous goal in mind, we have hereunder highlighted a number of mid-cap treasures: stocks with better dividends and earnings multiples than you'll find anywhere in the investing universe.
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Olin Corporation (NYSE:OLN) is an interesting mix of businesses. On the one hand the company produces chlor alkali products such as bleaches, caustic soda, chlorine and the like. On the other, it makes bullets. The legendary Winchester ammunition and associated small calibre weapons components make up over a quarter of the company's sales. Olin stock trades with a P/E ratio of 8 and sports a dividend yield of 4.8%. The shares are priced at 1.49-times book value and 0.77-times sales.
Several Impressive Utility Companies
SCANA Corporation (NYSE:SCG) is the first of three good looking utilities appearing on the value investor's radar. SCANA shares have a P/E ratio of 11.5, a P/B of 1.26 and a price/sales multiple of 0.95-times. The stock offers an annual dividend yield of 5.5%.
SCANA operates in the electricity an natural gas delivery business in the Carolinas and Georgia.
Public Service Enterprise Group (NYSE:PEG) is also in the energy delivery business, with operations focused in the Northeast and Mid-Atlantic States. The yield on the stock is 4.3% and the current price/earnings ratio is 10.8. PEG trades with a P/B value of 1.78.
The company recently became a signatory to the American Businesses for Clean Energy (ABCE) initiative, a group which supports congressional action to reduce greenhouse gas emissions.
Exelon Corporation (NYSE:EXC) rounds out our trio of fundamentally sound utilities, with a P/E ratio of 11 and a yield of 4.50% per annum. The company delivers electricity and natural gas to consumers in and around Chicago and Philadelphia.
Supermarket with Secure Fundamentals
Ingles Markets, Incorporated (Nasdaq:IMKTA) operates a chain of nearly 200 grocery stores across the Southeast U.S. with its home base in North Carolina. The company offers a dividend yield of 4.3% and trades with a multiple of 11-times last year's earnings.
Ingles trades below the breakup value of the company, with a price/book ratio of 0.96 and at an extremely depressed P/S of just 0.12.
The Bottom Line
Some mid-cap names are more deserving of attention than the media affords them. The above listed companies are just a few that currently trade with both healthy yields and solid fundamentals. Value investors take note. (For more, see Determining What Market Cap Suits Your Style.)
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