For small, fast-growing companies, dividends are an unaffordable luxury. But a handful of small businesses are finding ways to pay a dividend without compromising their growth, offering potential for solid gains with a slice of income on the side. Dividends are actually quite common in small-cap country. More than half of the companies in Standard & Poor’s Small-Cap 600 Stock Index pay dividends, and they yield an average 2.3%, slightly trailing the 2.4% yield of dividend payers in the S&P 500 (the full S&P 500, which includes companies that don’t pay dividends, yields 2.1%). Granted, most of these businesses aren’t likely to make the big leagues. Financial companies and industrials dominate the roster of small-capitalization stocks, so you’ll be hard-pressed to find the next Under Armour (symbol UA) on the list.
Companies that can pay dividends without much financial stress offer the most upside. These businesses tend to be solidly profitable, have a manageable amount of debt, and should be able to increase their dividends consistently, giving investors a raise each year. Keeping those factors in mind, we found four stocks and one exchange-traded fund that look compelling from both a growth and an income perspective: ABM Industries (ABM), City Holding (CHCO), Escalade (ESCA) and ProShares Russell 2000 Dividend Growers ETF (SMDV).
Source: Kiplinger.com
Related Articles:
- What's Your Retirement Vision?
- Stock Dividends - The Gift of Nothing
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks
- 5 Lessons Learned About Investing In Dividend Growth Stocks
4 Small-Cap Dividend Stocks With Big Appeal
Posted by D4L | Thursday, September 03, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.