Dividend Yield: 10.1%
Market Cap: $270 million

Business development company PennantPark (PNNT) is a leading provider of "mezzanine" financing and has a dividend yield of more than 10%.

Mezzanine capital is unsecured, and since it is often used by smaller companies and may involve greater overall leverage levels than issuers it can come with high risk. However the returns on these types of loans are very substantial -- and now that the worst of the economic downturn is behind us, PennantPark stands to do brisk business.

Dividends are an often overlooked but crucial part of a successful retirement strategy. These quarterly offerings can provide a regular "paycheck" for retirees -- especially when the company is a high-yielding blue chip with a track record of boosting its dividend year after year.

But dividends don't just have to be a quiet way to grow your nest egg. They can really supercharge your returns when you buy into a great stock that also happens to be cash-rich. On top of the appreciation you see in your shares, you'll also get a great bonus checked mailed four times a year -- or more, depending on the dividend schedule.

MOST NOTEWORTHY: PennantPark (PNNT), Delta Air Lines (DAL) and several insurance companies were today's noteworthy initiations:

• PennantPark Investment Corp. (NASDAQ: PNNT) was initiated with a Buy rating and $17 target at Jefferies. The finds shares compelling given the potential dividend growth and book multiple expansion. PennantPark was also initiated at Keefe Bruyette with an Outperform rating and $18 target, at Banc of America with a Buy rating and $16 target and at Friedman Billings with an Outperform rating and $17 target.
• Delta Air Lines Inc. (NYSE: DAL) was initiated at Bear Stearns with a Peer Perform rating and at Cathay Financial with an Outperform rating.
• Banc of America initiated RenaissanceRe Holdings Ltd. (NYSE: RNR) with a Buy rating and Montpelier Re Holdings Ltd. (NYSE: MRH) and IPC Holdings Ltd. (NASDAQ: IPCR) with Neutral ratings.

OTHER INITIATIONS:

• Dell Inc. (NASDAQ: DELL) was initiated with a Hold rating and $24 target at Soleil.
• Robert W. Baird initiated Avery Dennison Corp. (NYSE: AVY) with an Outperform rating.
• Steel Dynamics Inc. (NASDAQ: STLD) was initiated with a Buy rating and $58 target at Citigroup.
• Nollenberger initiated Lakes Entertainment Inc. (NASDAQ: LACO), MTR Gaming (NASDAQ: MNTG) and Full House Resorts (NYSE: FLL) with Buy ratings and Monarch Casino (NASDAQ: MCRI) with a Neutral rating.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).