Tuesday, April 12, 2016


While looking for a new stock to replace the monthly dividend from ROYT, I came across a stock I'm very excited about.  JMP Group Inc. (JMP:NYSE) is a full service investment banking and asset management firm.  Their current price of $5.11 is near their 52 week low and the stock carries a dividend yield of 9.54%!  Their price to earnings is 11.71% (well below the average) and their price to book is only 0.36%.  The monthly dividend of 4 cents per share is more than covered by earnings of 57 cents per share.  In addition to all this, a top executive of the company recently purchased 26,500 shares of the companies stock, an investment of over $132,500.  If an insider is willing to buy so many shares, he's probably in a position to know that the stock is under valued.  Not only that, but while he waits for the market to catch on, he's collecting a monthly dividend of $1,060 per month or $12,720 per year!  

So I put in an order to purchase shares of JMP today and will be buying more as the year progresses.  While I don't have the kind of money to invest like the company executive, I think I'll do well with whatever stake I'm able to purchase.  Since it's a relatively small company, with a market capitalization of $107.15 million, it may not gain mainstream attention anytime soon.  However, with such a high dividend payout, I'm more than happy to wait.  My current investment in JMP boosts total monthly dividends by 1.6%!  

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