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.

Who said their wasn’t money in trash. Well these three companies pass their profits to share holders. Listed below are three companies that are in the waste management industry. Two large caps and one small cap. All three pay a nice dividend. One well known tycoon has a significant stake in Republic Services.

Waste Management, Inc. - was founded in 1894 and is based in Houston, Texas. Waste Management (WM) is the leading provider of comprehensive waste management and environmental services in North America. As of December 31, 2008, the company served nearly 20 million municipal, commercial, industrial and residential customers through a network of 367 collection operations, 355 transfer stations, 273 active landfill disposal sites, 16 waste-to-energy plants, 104 recycling plants, and 111 beneficial-use landfill gas projects.

Republic Services, Inc. - was founded in 1996 and is headquartered in Phoenix, Arizona.  Republic Services (RSG) is a leading provider of solid waste collection, transfer, recycling and disposal   services. We operate 400 collection companies in 40 states and Puerto Rico and provide top quality services to commercial, industrial, municipal and residential customers. Republic serves millions of residential customers under contracts with more than 3,000 municipalities for waste collection and residential services.

American Ecology Corporation - was founded in 1952 and is headquartered in Boise, Idaho.  American Ecology (ECOL) is one of the nation’s oldest providers of radioactive and hazardous waste services. The company accepts hazardous and low-level radioactive waste from commercial and government entities, such as refineries and chemical production facilities, manufacturers, electric utilities, steel mills, and medical and academic institutions. American owns one commercial nuclear waste disposal site and three hazardous waste sites in the United States.

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*William (Bill) H. Gates is chairman of Microsoft Corporation, the worldwide leader in software, services and solutions that help people and businesses realize their full potential.  Mr. Gates owns 15% of the common shares through his investment vehicle  Cascade Investment LLC  and The Gates Foundation.

*Mr. Heil is a land developer and private investor, and has owned and operated one of the largest solid waste landfills in the mid western United States. Mr. Heil has more than 40 years experience in the construction and waste service industries and has, since 2002, served as President of E.F. Heil, LLC, operator of a landfill in Plainfield, Illinois. Mr. Heil is a director of  American Ecology and the largest individual share holder in the company owning close to 6% of the common stock.

by Jack Hough via  SmartMoney.com and author of “Your Next Great Stock.”

Eaton Vance $ETN - A Warren Buffett holding, Eaton Corporation operates as a power management company primarily in the United States, Canada, Europe, Latin America, and the Asia Pacific. Eaton has a dividend yield of  4.5%, a trailing PE ratio of 9.5, a forward PE ratio of 14 and a Price/Cash Flow ratio of 4.7.

Entergy Corp. $ETR - Entergy Corporation, together with its subsidiaries, operates as an integrated energy company. Entergy has a dividend yield of 4.1%, a trailing PE ratio of 12.7, a forward PE ratio of 10.5 and a Price/Cash Flow ratio of 4.6.

AT&T $T -  AT&T Inc. operates as a communications holding company. Its subsidiaries and affiliates provide the AT&T brand services in the United States and internationally. AT&T has a dividend yield of 6.8%, a trailing PE ratio of 11.5, a forward PE ratio 11, and a Price/Cash Flow ratio of 4.

Pfizer Inc. $PFE -  Pfizer engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals worldwide. Bruce berkowitz of Fairholme Capital $FAIRX a manager that operates on the same value oriented principles as Warren Buffett has about 21% of his fund invested in $PFE. Pfizer has a dividend yield of 4.4%, a trailing PE ratio of 12.4, a forward PE ratio of 6.7, and a Price/Cash Flow ratio of 5.5.

*ETR current yield is 3.8%

*Price/Cash Flow ratio -  A measure of the market’s expectations of a firm’s future financial health. Because this measure deals with cash flow, the effects of depreciation and other non-cash factors are removed. Similar to the price-earnings ratio, this measures provides an indication of relative value.