Leading server chassis manufacturer is a dividend grower with 6.6% yield

Spinoff of property arm makes the manufacturing a pure play

Karrie International is a small cap value stock with some growth.

Such stocks are not as expensive as pure growth stocks but they are priced lower because of their less sexy and 'moaty' businesses. 

Their small sizes is also an issue as it would be avoided by most fund managers, and even retail investors won't pay much attention to them relative to the top blue chip stocks.

Hence their stocks can be mispriced against their strong fundamentals, like Karrie in this case.

Karrie has shown good growth in the past. Here are the 5-year compound annual growth rates for various metrics:

• Revenue: +8.3%

• Earnings: +26.7%

• Dividend: +30.8%

For such growth rates, the PE ratio of 5.3x and the dividend yield of 6.6% are considered cheap.

The dividend distribution has been consistent and on a growing trend. There were many years where special dividends were given due to the good financial performances.