Dividends4Life: Income Investors Should Consider These Smaller Stocks

Since the 2008 financial crisis and subsequent market meltdown, when many growth investors were caught by surprise with massive principal losses in a short amount of time, investors have fully embraced dividend payments. The volatility-reducing, cash-in-hand value of those quarterly dividends goes a long way to providing investors with a dose of downside protection. And, while nearly all investors are likely well aware of the market's biggest dividend-paying stocks, there happen to be highly profitable, dividend-paying small- and mid-cap stocks that should be given their due consideration.

Just because a company is small in size doesn't mean it can't offer investors a long historical track record of strong profitability and hefty dividend payments. Many small stocks, such as medical-supply distributor Owens & Minor (NYSE: OMI), are as intent on paying strong dividends as any large-cap stock. Owens & Minor bumped up its payout by 9% this year, which marked the 16th consecutive year of a dividend increase. Equally impressive in its commitment to providing returns to shareholders is ATM manufacturer Diebold (NYSE: DBD), which recently celebrated its 150th anniversary. If a 3% to 4% yield doesn't quite whet your appetite, an interesting choice could be property and casualty insurer Mercury General (NYSE: MCY).

Source: Motley Fool

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