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8 Small Cap Dividend Growth Stocks Warren Buffett Would Love

Today I'd like to share small-capstocks with businesses that are both understandable and durable, but trade at prices I personally deem too high. All businesses have traits Buffett would love: durable brands, strong competitive positions, and low-cost advantages. If Mr. Market gives me a deal, I'll be buying shares of each with both hands.

The fascinating thing about low market valuations is that the company can grow at a faster pace because their current market potential seems to be enormous.

The bad thing about those stocks is that they offer a higher risk. However, let's try the screen and face the facts.

Here are the results:

TransMontaigne Partners -- Yield: 6.57%

TransMontaigne Partners (NYSE:TLP) employs 510 people, generates revenue of $150.06 million and has a net income of $32.46 million. The current market capitalization stands at $666.37 million.

TransMontaigne Partners’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $64.01 million. The EBITDA margin is 42.65% (the operating margin is 25.94% and the net profit margin 21.63%).

Financials: The total debt represents 37.95% of TransMontaigne Partners assets and the total debt in relation to the equity amounts to 64.37%. Due to the financial situation, a return on equity of 7.39% was realized by TransMontaigne Partners.

Twelve trailing months earnings per share reached a value of $1.62. Last fiscal year, TransMontaigne Partners paid $2.66 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.05, the P/S ratio is 4.44 and the P/B ratio is finally 1.96. The dividend yield amounts to 6.57%.

Stock Charts:

Long-Term Stock Price Chart of TransMontaigne Partners (TLP)
Long-Term Stock Price Chart of TransMontaigne Partners (TLP)
Long-Term Dividend Payment History of TransMontaigne Partners (TLP)
Long-Term Dividend Payment History of TransMontaigne Partners (TLP)
Long-Term Dividend Yield History of TransMontaigne Partners (TLP)
Long-Term Dividend Yield History of TransMontaigne Partners (TLP)

Universal Health Realty Income Trust -- Yield: 5.33%

Universal Health Realty Income Trust (NYSE:UHT) employs people, generates revenue of $59.79 million and has a net income of $51.55 million. The current market capitalization stands at $639.44 million.

Universal Health Realty Income Trust’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40.45 million. The EBITDA margin is 67.66% (the operating margin is 86.23% and the net profit margin 86.23%).

Financials: The total debt represents 49.70% of Universal Health Realty Income Trust assets and the total debt in relation to the equity amounts to 104.19%. Due to the financial situation, a return on equity of 27.85% was realized by Universal Health Realty Income Trust.

Twelve trailing months earnings per share reached a value of $3.97. Last fiscal year, Universal Health Realty Income Trust paid $2.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.12, the P/S ratio is 10.70 and the P/B ratio is finally 3.13. The dividend yield amounts to 5.33%.

Stock Charts:

Long-Term Stock Price Chart of Universal Health Realty Income Trust (UHT)
Long-Term Stock Price Chart of Universal Health Realty Income Trust (UHT)
Long-Term Dividend Payment History of Universal Health Realty Income Trust (UHT)
Long-Term Dividend Payment History of Universal Health Realty Income Trust (UHT)
Long-Term Dividend Yield History of Universal Health Realty Income Trust (UHT)
Long-Term Dividend Yield History of Universal Health Realty Income Trust (UHT)

Donegal Group -- Yield: 3.60%

Donegal Group (NASDAQ:DGICA) employs 410 people, generates revenue of $586.55 million and has a net income of $14.54 million. The current market capitalization stands at $439.04 million.

Donegal Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $111.47 million. The EBITDA margin is 19.00% (the operating margin is 3.03% and the net profit margin 2.48%).

Financials: The total debt represents 4.14% of Donegal Group assets and the total debt in relation to the equity amounts to 14.53%. Due to the financial situation, a return on equity of 3.58% was realized by Donegal Group.

Twelve trailing months earnings per share reached a value of $0.81. Last fiscal year, Donegal Group paid $0.53 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.53, the P/S ratio is 0.75 and the P/B ratio is finally 0.97. The dividend yield amounts to 3.60%.

Stock Charts:

Long-Term Stock Price Chart of Donegal Group (DGICA)
Long-Term Stock Price Chart of Donegal Group (DGICA)
Long-Term Dividend Payment History of Donegal Group (DGICA)
Long-Term Dividend Payment History of Donegal Group (DGICA)
Long-Term Dividend Yield History of Donegal Group (DGICA)
Long-Term Dividend Yield History of Donegal Group (DGICA)

Middlesex Water -- Yield: 3.53%

Middlesex Water (NASDAQ:MSEX) employs 282 people, generates revenue of $117.14 million and has a net income of $18.44 million. The current market capitalization stands at $352.06 million.

Middlesex Water’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $46.58 million. The EBITDA margin is 39.77% (the operating margin is 29.36% and the net profit margin 15.75%).

Financials: The total debt represents 27.95% of Middlesex Water assets and the total debt in relation to the equity amounts to 80.58%. Due to the financial situation, a return on equity of 9.48% was realized by Middlesex Water.

Twelve trailing months earnings per share reached a value of $1.15. Last fiscal year, Middlesex Water paid $0.76 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.93, the P/S ratio is 3.01 and the P/B ratio is finally 1.78. The dividend yield amounts to 3.53%.

Stock Charts:

Long-Term Stock Price Chart of Middlesex Water (MSEX)
Long-Term Stock Price Chart of Middlesex Water (MSEX)
Long-Term Dividend Payment History of Middlesex Water (MSEX)
Long-Term Dividend Payment History of Middlesex Water (MSEX)
Long-Term Dividend Yield History of Middlesex Water (MSEX)
Long-Term Dividend Yield History of Middlesex Water (MSEX)

Tompkins Financial -- Yield: 3.17%

Tompkins Financial (NYSEMKT:TMP) employs 1,037 people, generates revenue of $184.49 million and has a net income of $52.17 million. The current market capitalization stands at $793.99 million.

Tompkins Financial’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $89.75 million. The EBITDA margin is 38.26% (the operating margin is 33.07% and the net profit margin 22.24%).

Financials: The total debt represents 10.26% of Tompkins Financial assets and the total debt in relation to the equity amounts to 110.81%. Due to the financial situation, a return on equity of 10.91% was realized by Tompkins Financial.

Twelve trailing months earnings per share reached a value of $3.47. Last fiscal year, Tompkins Financial paid $1.62 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.29, the P/S ratio is 3.38 and the P/B ratio is finally 1.61. The dividend yield amounts to 3.17%.

Stock Charts:

Long-Term Stock Price Chart of Tompkins Financial (TMP)
Long-Term Stock Price Chart of Tompkins Financial (TMP)
Long-Term Dividend Payment History of Tompkins Financial (TMP)
Long-Term Dividend Payment History of Tompkins Financial (TMP)
Long-Term Dividend Yield History of Tompkins Financial (TMP)
Long-Term Dividend Yield History of Tompkins Financial (TMP)

Connecticut Water -- Yield: 2.95%

Connecticut Water (NASDAQ:CTWS) employs 265 people, generates revenue of $94.02 million and has a net income of $21.32 million. The current market capitalization stands at $389.43 million.

Connecticut Water’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41.22 million. The EBITDA margin is 43.84% (the operating margin is 31.48% and the net profit margin 22.67%).

Financials: The total debt represents 26.97% of Connecticut Water assets and the total debt in relation to the equity amounts to 86.12%. Due to the financial situation, a return on equity of 10.45% was realized by Connecticut Water.

Twelve trailing months earnings per share reached a value of $1.93. Last fiscal year, Connecticut Water paid $0.75 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.12, the P/S ratio is 4.14 and the P/B ratio is finally 1.85. The dividend yield amounts to 2.95%.

Stock Charts:

Long-Term Stock Price Chart of Connecticut Water (CTWS)
Long-Term Stock Price Chart of Connecticut Water (CTWS)
Long-Term Dividend Payment History of Connecticut Water (CTWS)
Long-Term Dividend Payment History of Connecticut Water (CTWS)
Long-Term Dividend Yield History of Connecticut Water (CTWS)
Long-Term Dividend Yield History of Connecticut Water (CTWS)

American States Works -- Yield: 2.28%

American States Works (NYSE:AWR) employs 707 people, generates revenue of $465.79 million and has a net income of $61.06 million. The current market capitalization stands at $1.41 billion.

American States Works’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $161.96 million. The EBITDA margin is 34.77% (the operating margin is 25.56% and the net profit margin 13.11%).

Financials: The total debt represents 23.66% of American States Works assets and the total debt in relation to the equity amounts to 64.34%. Due to the financial situation, a return on equity of 12.15% was realized by American States Works.

Twelve trailing months earnings per share reached a value of $1.60. Last fiscal year, American States Works paid $0.83 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.38, the P/S ratio is 3.03 and the P/B ratio is finally 2.83. The dividend yield amounts to 2.28%.

Stock Charts:

Long-Term Stock Price Chart of American States Works (AWR)
Long-Term Stock Price Chart of American States Works (AWR)
Long-Term Dividend Payment History of American States Works (AWR)
Long-Term Dividend Payment History of American States Works (AWR)
Long-Term Dividend Yield History of American States Works (AWR)
Long-Term Dividend Yield History of American States Works (AWR)

Mesa Laboratories -- Yield: 0.70%

Mesa Laboratories (NASDAQ:MLAB) employs 276 people, generates revenue of $71.33 million and has a net income of $9.58 million. The current market capitalization stands at $328.52 million.

Mesa Laboratories’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $21.52 million. The EBITDA margin is 30.17% (the operating margin is 22.24% and the net profit margin 13.43%).

Financials: The total debt represents 22.37% of Mesa Laboratories assets and the total debt in relation to the equity amounts to 35.72%. Due to the financial situation, a return on equity of 13.91% was realized by Mesa Laboratories.

Twelve trailing months earnings per share reached a value of $2.63. Last fiscal year, Mesa Laboratories paid $0.62 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 34.92, the P/S ratio is 4.61 and the P/B ratio is finally 4.45. The dividend yield amounts to 0.70%.

Stock Charts:

Long-Term Stock Price Chart of Mesa Laboratories (MLAB)
Long-Term Stock Price Chart of Mesa Laboratories (MLAB)
Long-Term Dividend Payment History of Mesa Laboratories (MLAB)
Long-Term Dividend Payment History of Mesa Laboratories (MLAB)
Long-Term Dividend Yield History of Mesa Laboratories (MLAB)
Long-Term Dividend Yield History of Mesa Laboratories (MLAB)