Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Thank you for selecting your broker
We are redirecting you to the Broker Center now
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Thank you for your submission, we hope you enjoy your experience
ALERT

‘Trump Bump’ Forces out MedTech Company from Best Dividend Stocks List

Dividend logo

When it comes to small- and mid-cap stocks, most investors look at them as capital gains components for their portfolios—and there are plenty of good reasons to think that way. Both Russell 2000 and S&P 400 indexes, and their respective uber-popular ETFs (the iShares Russell 2000 (IWM ) and SPDR S&P Midcap 400 (MDY )), have managed to trounce the large-cap S&P 500 over the longer haul—and by a lot.

However, those hefty gains come with a hefty dose of volatility: Both small- and mid-caps do bounce around quite a bit more than their larger twins. As a result, most income seekers and those investors either nearing or in retirement tend to avoid smaller firms, which could be a huge mistake.

Looking past their growth monikers, many small- and mid-cap stocks are wonderful dividend payers as well. And while headline yields aren’t as high, these smaller stocks do feature faster rates of dividend growth.

At the end of the day, the time for investors to look towards small- and mid-caps as income plays is now.

To read the Full Story, Go Premium or Log In

Popular Articles

News

Royal Bank of Canada Sees 2.5% Decrease in Dividend

Each day, companies across the globe announce new upcoming dividend payouts. Last week there were...

Premium Shutterstock 552351427
News

Why Real Risk Involves Valuation

Financial academics define risk as volatility. But while a stock or a mutual fund that bounces...

News

Morgan Stanley Leads 79 Stocks Going Ex-Dividend This Week

There are 79 stocks going ex-dividend this week starting Monday, Jan. 22. For income investors...