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Practical Advice from

3 Small-Cap Stocks With Sizable Dividends

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Small-cap stocks took it on the chin last week as North Korean tensions had investors running as fast as they could from anything that wasn’t the bluest of blue chips.

The Russell 2000 Index lost 2.7% in the five days of trading between Aug. 7 and Aug. 11, its worst week since February 2016. Now up just 3% year to date compared to 10% for the S&P 500, the flight to quality is threatening to leave small caps on the outside looking in.

Investors who love dividend stocks rarely buy small-cap stocks because they’re interested in consistent dividend growth, something smaller companies often can’t provide.

In the ninth year of a bull market, the price-to-earnings ratio of the S&P 600 SmallCap Index, like most indexes, has risen dramatically since 2011.

That said, it doesn’t mean there aren’t small caps worth owning that pay a sizable dividend and are still growing.

Here are my three best ideas of small-cap stocks worth owning.

Prices and data are from the original InvestorPlace story published on August 14, 2017. Click on ticker-symbol links in each slide for current prices and more.

SEE ALSO FROM KIPLINGER: 7 Reliable Dividend Stocks to Buy Now

This slide show is from InvestorPlace, not the Kiplinger editorial staff.

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