Top 10 Highest-Yielding Nasdaq Stocks - TheStreet

Many investors, when looking for income stocks, automatically go to the New York Stock Exchange. Although there are a lot of NYSE stocks with high yields, such as the oil income trusts, plenty of high-dividend-paying stocks can be found on the Nasdaq as well.

With that in mind, we have put together a portfolio of the top 10

Highest-Yielding Nasdaq Stocks


For example,

MCG Capital


, an investment company that trades on the Nasdaq, yields 11% and pays its dividends quarterly. MCG invests in small- to medium-sized companies through acquisitions, financings and leveraged buyouts. The stock has a

price-to-earnings ratio of 8.4 and a P/E-to-growth ratio of 1.18.

MCG was recently added to the portfolio of

James Small-Cap

(JASCX), a fund with a five-star Morningstar rating that specializes in small-cap companies. Its average annual return is 16.6% over the last three years.

The James fund owns several other dividend-paying stocks, including two natural gas companies:

Copano Energy

( CPNO), which yields 3.8% and has a P/E of 22, and

Southwest Gas

(SWX) - Get Report

, which offers a yield of 2.6%, a P/E of 15.1 and a PEG of 3.31.

Another Nasdaq high-yielder is

USA Mobility


, a company that provides wireless communications services to the health care industry and to government agencies. The stock yields 10.6% and has a P/E of 18. Its latest quarterly earnings showed 6.2% growth.

USA Mobility is also owned by

Bruce Berkowitz

, who was nominated by Morningstar as Domestic-Stock Manager of the Year in 2006. Berkowitz is the founder of the

Fairholme fund

(FAIRX), which takes a highly focused approach to investing. Its focused, low-turnover portfolio was designed that way because Berkowitz believes that the more companies you own, the more difficult it is to understand all of them.

Berkowitz also invests in

Warren Buffett's


Berkshire Hathaway

(BRK.A) - Get Report

, shares of which account for 21% of his portfolio. In addition, Berkowitz holds the very high-yielding

Penn West Energy Trust


, a Canadian oil income trust that carries an 11.2% yield and offers a P/E of 12.5 as well as a price-to-sales ratio of 4.5.

Another Nasdaq high-yielder is

Hercules Technology Growth Capital

(HTGC) - Get Report

, a venture capital firm that participates in private equity, leveraged buyouts, spinoffs and various types of loans. Small-cap Hercules yields a hefty 9%, and it has paid its dividends on a quarterly basis for the last seven quarters. The stock has a P/E of 15 and a PEG of 1.08.

Hercules is a stock that's owned by

Benchmark Capital

, a venture capital fund specializing in early-stage startup funding. Some of its previous investments include


(EBAY) - Get Report

, AOL (which is now a unit of

Time Warner


) and


( PALM).

For the rest of these high-yield, regular-dividend payers, check out the

Highest-Yielding Nasdaq Stocks


Please note that due to factors including low market capitalization and/or insufficient public float, we consider Hercules Technology Growth Capital 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.

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