Six High-Yield Stocks You've Never Heard Of

Ferrellgas Partners(FGP Quote) distributes propane and propane accessories throughout the U.S. (Hank Hill would be proud.) The propane industry is a slow and steady one, and customers tend to remain loyal to their distributors. There are low barriers to entry into this retail market and there are many small distributors with small numbers of customers, but Ferrellgas has over 1 million customers, and it services roughly 10% of the retail market.

Business risk is relatively high with FGP because its business is levered to weather and customer consumption. FGP currently yields an attractive 9.1%, but the stock is trading at a relatively expensive 30 times next year's earnings estimates. FGP is found in the portfolios of Yale Capital, Value Line Income and Growth Fund and Rochdale Dividend and Income Portfolio.

Genesis Lease(GLS Quote) acquires and leases commercial passenger and cargo aircraft under long-term contracts to airlines. GLS missed third-quarter earnings estimates by a nickel a share primarily due to increased expenses associated with the purchase of additional aircraft and recruitment of additional staff, but revenue was $300,000 higher than expected. Expected 2007 distribution per share is $2.07. With healthy worldwide air travel and a limited supply of aircraft, leasing by airlines (particularly in emerging markets) is expected to be strong.

Those of you more familiar with the aircraft leasing business may ask why suggest GLS and not Aircastle(AYR Quote) or Babcock & Brown(FLY Quote), which have dividend yields of 8.9% and 8.7%, respectively.

FLY is a recent IPO that has yet to pay its dividend, and even though GLS and AYR have almost identical debt/equity ratios, AYR recently completed a secondary offering and more importantly, General Electric(GE Quote) owns an 11% stake in GLS. In addition to GE's stake in GLS, Wellington Capital Management holds 14% of the outstanding shares, and (SCWBX Quote)American Funds Smallcap World Fund holds 7%.

Southern Copper(PCU Quote) mines, smelts and produces copper. Copper is needed as infrastructure in emerging markets continues to be developed. PCU is estimated to earn $9.07 a share in full-year 2007 and $10.52 in 2008.

PCU has a yield of 6.6%, paying $6.80 a share. Blackrock Group and JPMorgan Chase are the top institutional holders, while (UMBIX Quote)Excelsior Value and Restructuring Fund and (CGMRX Quote)CGM Realty Fund are the top Mutual Fund holders of PCU. Although Freeport-McMoRan(FCX Quote) is everyone's darling, its measly 1.1% dividend just isn't in the same league.

Standard Register(SR Quote) provides custom printing services for businesses in the U.S. The company pays a dividend of 72 cents a share, representing a yield of 7.2%.

It has a forward PE of 22 and has consistently paid its quarterly dividend for the past seven years. With a PEG approaching 5, Standard Register is certainly not a growth stock, but it has a solid niche business, particularly in its production of tamper-resistant prescription forms.

Management has made some difficult decisions and taken some cost-cutting measures that should improve the company's outlook. While I would not normally consider a stock like Standard Register due to its small market capitalization, its low return on equity and marginal debt-to-capitalization ratio suggest it should continue to be a consistent dividend payer. That I believe makes Standard Register worthy of consideration. (GMRCX Quote)Nationwide Small Cap Fund is the largest mutual fund holder of SR shares.

Vector Group(VGR Quote) makes and sells cigarettes and also dabbles in real estate, offering residential brokerage services and holding interests in spas, resorts and hotels. VGR trades at a P/E of 17.7 and a PEG of 1.7 with a dividend yield of 7.2%. VGR is estimated to earn 98 cents a share for full-year 2008. VGR's third-quarter earnings declined primarily due to a tax adjustment in the previous year's quarter.

Because VGR is small, one of the larger tobacco companies may find it worthwhile to purchase VGR. Carl Icahn is the top institutional owner, holding 19.7% of the outstanding shares. (KDSAX Quote)DWS Dreman Small Cap Value Fund is the largest mutual fund holder of the stock.

For all of my high-yield stock picks, check out Big Poppa's High-Yielding Stocks and for more ideas, Top-Yielding Stocks With Raised Dividends, both at Stockpickr.com.

COMPANY	INDUSTRY	ANNUAL DIVIDEND	YIELD
Atlas Pipeline (APL)	Pipelines	$3.64	7.9%
Ferrell Gas Partners (FGP)	Gas Distribution	$2.00	9.1%
Genesis Lease (GLS)	Aircraft Leasing	$1.81	9.2%
Southern Copper (PCU)	Metals	$6.80	6.6%
Standard Register (SR)	Bus. Support Services	$0.92	7.2%
Vector Group (VGR)	Tobacco	$1.60	7.4%

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Standard Register to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.