Here are 3 under valued small caps trading for a P/E under 11 that are paying a dividend yield in access of 5%. All three have no debt. Each operates in a different industry. All three have a double digit return on equity, return on assets as well as double digit earnings growth over the last 5 years.

Terra Industries Inc. is a leading international producer of nitrogen products for agricultural, industrial and environmental markets. They own and operate six North American nitrogen products manufacturing facilities and own 50% interest in joint ventures in the United Kingdom and The Republic of Trinidad and Tobago. Our headquarters is in Sioux City, Iowa. Terra provides products that are essential to meeting the needs of a growing global population. Their nitrogen product line includes ammonia, urea ammonium nitrate solutions (UAN), ammonium nitrate (AN) and urea. With the capacity to produce about 6.5 million tons of product at our North American facilities annually, Terra is a vital contributor to the markets they serve.

USA Mobility, Inc., headquartered in Alexandria, Virginia, is a leading provider of paging products and other wireless services to the business, government and healthcare sectors. USA Mobility offers traditional one-way and advanced two-way paging via its nationwide networks covering over 90% of the U.S. population and with roaming partners in Canada and Mexico. In addition, the company offers mobile voice and data services through Sprint and Nextel including BlackBerry and GPS location applications. The company’s product offerings include wireless connectivity systems for medical, business, government and other campus environments. USA Mobility focuses on the business-to-business marketplace and supplies mobile connectivity solutions to over two-thirds of the Fortune 1000. In addition to its reliable, nationwide one-way networks, USA Mobility’s two-way networks have the largest high-powered terrestrial ReFLEX footprint in the United States with roaming partners in Canada and Mexico. USA Mobility provides the preferred ReFLEX wireless data network for many of the largest telecommunication companies in the United States that source network services and resell under their own brand names.

Life Partners Holdings, Inc. is a financial services company and the parent company of Life Partners, Inc. (“LPI”), one of the oldest and most active companies in the United States engaged in the secondary market for life insurance known generally as “life settlements.”These financial transactions involve the purchase of life insurance policies at a discount to their face value for investment purposes. LPI originates, analyzes, and purchases life settlement transactions on behalf of its worldwide network of clients. By selling a life insurance policy, the policyholder receives an immediate cash payment to use as he or she wishes while the purchaser takes an ownership interest in the policy at a discount to its face value and receives the death benefit under the policy when the insured dies. Life Partners was instrumental in the formation of this industry and asset class. Since its incorporation, it has facilitated over 84,000 transactions associated with the purchase of approximately 6,000 policies totaling over $1.8 Billion in face value.

In the list below you will find 5 small Cap companies Buckle (BKE), Lufkin Industries (LUFK), Raven Industries (RAVN), NutriSystem (NTRI), and Columbia Sportswear Company (COLM). All five have a long history ranging from the newest NutriSystem which has been doing business for 37 years to Lufkin which has been around for over 100 years. All five companies have very little to no debt at all which is important especially in a slower economy. All five have had positive earnings growth for the last five years with strong free cash flow. All five sport a nice dividend which is also a bonus in uncertain times.

Buckle Inc was founded in 1948 and is headquartered in Kearney, Nebraska.  The Buckle operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States.

Lufkin Industries was founded in 1902 and is based in Lufkin, Texas. Lufkin Industries and its subsidiaries manufacture and sell oil field pumping units and power transmission products worldwide. It operates in two segments, Oil Field and Power Transmission.

Raven Industries was founded in 1956 and is headquartered in Sioux Falls, South Dakota. Raven Industries together with its subsidiaries, manufactures various products for industrial, agricultural, construction, and military/aerospace markets in North America. The company operates in four segments: Applied Technology, Engineered Films, Electronic Systems, and Aerostar International, Inc. (Aerostar).

NutriSystem Inc was founded in 1972 and is based in Horsham, Pennsylvania. NutriSystem provides weight management products and services in the United States and Canada. Its weight management program includes primarily of a pre-packaged food program and counseling.

Columbia Sportswear Company was founded in 1938 and is headquartered in Portland, Oregon. Columbia Sportswear  engages in the design, sourcing, marketing, and distribution of outdoor apparel, footwear, and related accessories and equipment in the United States, Canada, Europe, the Middle East, Africa, Latin America, and Asia Pacific. The company categorizes its products in four categories: outerwear, footwear, sportswear, and related accessories and equipment.

*The definition of small cap can vary, but generally it is a company with a market capitalization of between $300 million and $2 billion.

In the list below you will find 5 small Cap companies Snap On (SNA), Crane Co. (CR), Lincoln Electric (LECO),  Administaff (ASF), and Suburban Propane (SPH).

Snap-on Incorporated was founded in 1920 is a leading global innovator, manufacturer and marketer of tools, diagnostics, equipment, software and service solutions for professional users.  Products and services include hand and power tools, tool storage, diagnostics software, information and management systems, shop equipment and other solutions for vehicle dealerships and repair centers, as well as customers in industry, government, agriculture, aviation and natural resources.  Products and services are sold through the company’s franchisee, company-direct, distributor and Internet channels.  Founded in 1920, Snap-on is a $2.8 billion, S&P 500 company headquartered in Kenosha, Wisconsin.  Currently Snap On is 18th in Best-Rated Stocks in S&P 500 Index (7/15/2009)

Crane Co. was founded in 1855 is a diversified manufacturer of highly engineered industrial products with a substantial presence in a number of focused niche markets. With approximately 12,000 employees working together in five business segments across 25 countries, Crane generated 2008 net sales of $2.6 billion. We are dedicated to integrity and honest dealings in all that we do.

Lincoln Electric was founded in 1895 and today is the world leader in the design, development and manufacture of arc welding products, robotic welding systems, plasma and oxyfuel cutting equipment. Headquartered in Cleveland, the Company has manufacturing operations, joint ventures and alliances in 21 countries and a worldwide network of distributors and sales offices covering more than 160 countries. Lincoln has a global work force of more than 9,000.

Administaff established in 1986 is the nation’s leading professional employer organization (PEO), serving as a full-service human resources department for small and medium-sized businesses throughout the United States. Administaff delivers its personnel management services by entering into a co-employment relationship with a client company and the client company’s existing employees, including the business owner. Under this arrangement, Administaff assumes or shares many of the responsibilities of being an employer. Administaff’s target market is represented by progressive, growth-oriented businesses with 10-2,000 employees and relatively low workers’ compensation and unemployment risks. Most of Administaff’s clients are in white collar or skilled blue collar industries, such as technology, engineering, real estate, accounting, medical services, banking, legal, insurance and light manufacturing.

Suburban Propane Partners, L.P. was founded in 1928  and is one of the  nation’s leading marketers of propane gas, fuel oil, and related products and services. Serving approximately 1,000,000 residential, commercial, industrial and agricultural customers through approximately 300 locations in more than 30 states.

*The definition of small cap can vary, but generally it is a company with a market capitalization of between $300 million and $2 billion.