The Cato Corp. ( CATO) Company Profile: The Cato Corp. is a specialty retailer of women's fashion clothing and accessories. The company operates 1,300 stores in 31 states. Current Share Price: $23.51 (Nov. 29) Dividend Yield: 3.8% Platte's Take: Unlike Platte's other picks, with have market capitalizations above $1 billion, Cato is a much smaller company at only $693 million. "It is probably one of the smallest in our portfolio," Platte says. "But they have no debt and a large portion of the stock price in cash. This stock tends to be more volatile, so it bounces around a lot. Because they don't sell high-end fashion, they've had some negative same-store sales. But it's a good business formula that will continue to do well. They do increase the dividend regularly." Cato shares are down 14% this year and 19% over the past 12 months. However, the stock did hit a 52-week high of $30.77 in July and, earlier this month, the company said net income rose in the third quarter from a year ago even as same-store sales fell 3%.