5 Low P/E Dividend Paying Russell 2000 Small Caps

These 5 stocks, all components of the Russell 2000 index, qualify as value stocks, given their low price-earnings ratios (relative to the stock market as a whole), their decent record of earnings and their insistence on paying dividends to their shareholders.

At a time when growth stocks are so much in favor, when Nasdaq 100 big cap and social media favorites are showing p/e’s of much greater than the markets, it may be a good moment to consider out-of-favor value equities. If you have a contrarian frame of mind, lower valuation small caps may be worth examining.

5 Low P/E Small Caps.

Eastern Bancshares is a Boston, Massachusetts-based financial services company founded in 1818 and now operating 120 locations in the Northeast. This year’s earnings are up by 17.40% and up over the past 5 years by 19.60%.

Market capitalization for the bank is $2.22 billion. This Russell 2000 component trades at a 25% discount from its book value with a price-earnings ratio of 8. The debt-to-equity ratio is .03. Eastern Bancshares pays a dividend of 3.33%.

The weekly price chart is here:

Essent Group has a market capitalization of $5.73 billion. The Bermuda-based insurer has earnings this year that are up by 1.36%. The EPS growth over the past 5 years increased by 6.38%.

With a price-earnings ratio of 8, the stock trades at 1.12 times book. The debt-to-shareholder equity ratio is .09. Average daily volume is relatively light for an NYSE-listed equity at 539,000 shares. Essent offers investors a 1.92% dividend.

The weekly price chart looks like this:

Riley Exploration Permian is an oil and gas exploration company with corporate headquarters in Oklahoma City, Oklahoma. With a market capitalization of $627 million, this small cap trades on the AMEX at 1.42 times book value and a price-earnings ratio of 5.25.

Earnings this year are up by 39% and up over the past 5 years by 25%. Average daily volume is definitely light at 128,000 shares. Riley Exploration is paying a dividend of 4.78%.

SM Energy is an oil and gas exploration company in business since 1908. Market capitalization is $5.87 billion. Corporate headquarters are in Denver, Colorado with other operations in Midland and Houston, Texas.

Earnings this year are up by 1.12% and up over the past 5 years by 8.90%. The debt loads amounts to about half of shareholder equity. The short float of 9.23% signifies investor doubt — if shorts are forced to cover that could fuel a rally. SM pays a 1.24% dividend.

Here’s the weekly price chart:

Select Water Solutions is involved in water services, water infrastructure and oilfield services from corporate headquarters in Houston, Texas. Market capitalization for this Russell 2000 component is $937 million.

This year’s earnings are up by .42% and, over the past 5 years, up by 15.95%. The debt-to-equity ratio is .09 with a current ratio of 2.15. Select Water Solutions pays a dividend of 2.39%.

The weekly price chart is here:

Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.

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