4-Star Stocks Poised to Pop: MCG Capital

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, private equity firm MCG Capital (NAS: MCGC) has earned a respected four-star ranking.

With that in mind, let's take a closer look at MCG Capital's business and see what CAPS investors are saying about the stock right now.

MCG Capital facts

Headquarters (founded)Arlington, Va. (1990)
Market Cap$351.6 million
IndustryAsset management
Trailing-12-Month Revenue$79.0 million
ManagementChairman/CEO Richard Neu
President/COO B. Hagen Saville
Return on Equity (average, past 3 years)(6.9%)
Cash/Debt$59.9 million / $402.8 million
Dividend yield12.4%
CompetitorsAmerican Capital
Ares Capital
Gladstone Capital

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 90% of the 278 members who have rated MCG Capital believe the stock will outperform the S&P 500 going forward.  

Just last week, one of those Fools, ntg187, listed several of MCG Capital's positives:

Was introduced to it during the financial crisis and have been watching closely over the years until recently when I took a real stake in the company. This company has history of quality lending practices, low default rate, and at its current price a [ridiculously] amazing dividend which IS sustainable. This company has navigated the recession well and is poised to make a big move before the years end.

The high dividend makes this a great short term play, and the books, valuation, P/E, profitability, along with management make this a great long term play.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, MCG Capital may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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