5 Mid Cap Stocks in the Service Sector With High Dividend Yields

James Dennin, Kapitall: We decided to run a screen on dividend stocks, looking for mid cap stocks with yields above 5%.

Among all the talk of large caps vs. small caps, bull markets vs. bear, stock screens often leave out companies that are comfortably in the middle.

Mid cap stocks range in market capitalization between $2 and $10 billion in size, and can sometimes provide some of the security that comes with investing in larger companies, as well as growth prospects of smaller ones.

Read more from Kapitall: American Airlines and US Airways to Merge: Airline Stocks to Watch

One such company might be Corrections Corporation of America (CXW). Like all of the stocks in our screen, Corrections Corp. offers a robust dividend yield of 5.76%.

The company also has a relatively low valuation, with a forward price to equity ratio of only 14. Slight upticks in insider buying indicate that this company might have room to grow in 2014, or lucrative projects in the pipeline. 

One of the top performing entertainment stocks of the year also happens to have one of the highest dividend yields in the sector as well. Cedar Fair (FUN)'s trailing-12-month earnings per share was $2.12, following only  Priceline (PCLN) and Six Flags (SIX)

Another interesting company to consider is not one you'd expect: the printing company R.R Donnelley & Sons (RRD). With a clientele that includes 95% of the Fortune 500, and diversified services in printing, logistics, and outsourcing (among others), the company's future, and ability to pay out future dividends, seems relatively assured.

R.R Donnelley's valuation is pretty low, with a forward P/E of 12. However it's dividend yield is quite high at 5.62%, and the stock is up over 100% for the year. Some analysts believe the trend will continue.  

What do you think?

Click on the interactive chart to view dividend yields for these mid cap stocks over time.

Do you see investing opportunities among mid cap stocks that pay dividends? Use the list below as a starting point for your own analysis.

1. Corrections Corporation of America ( CXW): Operates privatized correctional and detention facilities in the United States. Market cap at $4.00B, most recent closing price at $34.45.

 

2. Cedar Fair, L.P. ( FUN): Operates amusement and water parks in the United States and Canada. Market cap at $2.65B, most recent closing price at $47.93.
 

 

3. The GEO Group, Inc. ( GEO): Provides government-outsourced services specializing in the management of correctional, detention, and mental health and residential treatment facilities in the United States, Australia, South Africa, and the United Kingdom. Market cap at $2.36B, most recent closing price at $33.13.

 

4. Macquarie Infrastructure Company LLC ( MIC): Operates in a diversified group of infrastructure businesses in the United States. Market cap at $2.95B, most recent closing price at $55.84.
 

 

5. R.R. Donnelley & Sons Company ( RRD): Provides pre-media, printing, logistics, and business process outsourcing products and services to private and public sectors worldwide. Market cap at $3.48B, most recent closing price at $19.53.

 

 

( List compiled by James Dennin, a Kapitall Writer. Dividend yields sourced from Zacks Invesment Research, all other data sourced from Finviz.)

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