The words “small cap” and “retirement portfolio” aren’t often heard in the same sentence. Stocks with smaller market capitalizations can be fantastic long-term growth investments. After all, most mega-cap stocks started out as small-cap stocks. Plus, small caps (along with value stocks) have been proven to outperform the market over time, according to Fama and French. So it makes all the sense in the world to keep small caps on your radar as an investor. But small caps generally fail my basic tests of suitability for a retirement portfolio. As I wrote in my critique of Warren Buffett’s Berkshire Hathway (BRK.A), a stock to be held in a long-term retirement portfolio should have a highly predictable business model, should be “technology proof” and should pay steadily rising dividend. Most small-cap stocks will fail one — or often all — of these criteria.
But there are definitely some small-cap stocks out there that are completely appropriate for a retirement portfolio, and I’m going to offer up six of them today. With any luck, none of them will be small caps forever. Their steady growth will eventually land them in mid-cap or even large-cap territory: StoneMor Partners (STON), Preferred Apartment Communities (APTS), STAG Industrial (STAG), Retail Opportunities Investment Corp (ROIC), Blue Knight Energy Partners (BKEP) and Teekay Corporation.
Source: Charles Sizemore
Related Articles:
- 5 Industrial Strength Dividend Growth Stocks With Yields In Excess Of 3%
- Finding Low Risk Dividend Stocks
- 10 Fun Facts That You Might Not Know About Microsoft
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
6 Small Caps to Fund Your Retirement
Posted by D4L | Tuesday, September 29, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
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 ...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.