Dividend investors are used to investing in megacap stalwart stocks without much growth potential. However, astute investors realize that the best growth prospects are in small-cap stocks, and hunting for valuable dividend payers among smaller companies can result in big rewards over the long haul..
In the following slideshow, Dan Caplinger, The Motley Fool's director of investment planning, looks through a host of small-cap companies to find some promising dividend payers. Between chemical and ammunition maker Olin , rent-to-own retailer Rent-A-Center , and water utility California Water Service Group , investors can find something for everyone among his picks, including reasons to buy and challenges that each company faces. With relatively strong dividend yields, each of these stocks are worth a look from dividend investors.
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The article 3 Top Small-Cap Dividend Stocks originally appeared on Fool.com.
Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends California Water Service Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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