TESSCO Technologies Inc. (NASDAQ:TESS) is among the few small-cap companies that are offering an attractive yield of more than 4.5% to investors.

TESSCO, the supplier of wireless communications products for site support, network infrastructure, and mobile broadband networks, provides a quarterly dividend of $0.20 per share to its investors at present. Its financial numbers and future fundamentals are strong enough to cover its dividend payments.

Business Strategy and Financial Growth Supports Dividend

TESSCO Technologies has been smoothly expanding its revenue base while the management continues to convert robust revenue growth into big profits. The company is working on four key strategies to generate sustainable growth in both top and the bottom line figures. The four strategies include:

1. Increasing its customer focus.
2. Raising its competition level.
3. Continuing to invest in technology tools.
4. Improving operational efficiencies.

The company’s business strategies are working, given the robust growth in financial numbers. TESSCO Technologies has generated 8% year-over-year growth in first-quarter revenues, driven by demand from the public carrier market and higher sales from the government markets. Its earnings per share also grew 63% to $0.13 in the first quarter of this year, the sixth consecutive quarter of year-over-year increase in EPS.

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TESSCO Technologies Outlook Indicates Steady Growth

The company expects to generate similar growth in the second quarter, supported by its go-to-market strategy and 5G buildouts.

Its CEO Murray Wright is optimistic in sustaining the growth trend in the days to come. He says, “Due to projected increases in carrier activity, in addition to anticipated growth across both the commercial and retail businesses, we anticipate accelerated growth in revenue and profitability during the remainder of fiscal 2019.”

Overall, the company expects increasing demand from the commercial and retail market in the following quarters – which would allow the company to sustain its dividend.

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