As many investors know, dividend-paying stocks far outperform non-dividend-paying stocks over the long term, and small-cap stocks have some of the highest growth rates in the market today. With both of these factors in mind, let’s take a look at three small-cap stocks with yields up to 5.9% that you could buy right now.

1. Sienna Senior Living Inc.: 5.9% yield

Sienna Senior Living Inc. (TSX:SIA) is one of Canada’s largest owners of senior housing communities, and it is the largest licensed provider of long-term care in Ontario. It pays a monthly dividend of $0.075 per share, or $0.90 per share annually, giving its stock a 5.9% yield at today’s levels. Investors should also note that the company has maintained this monthly payment since December 2012, and its consistent funds from operations could allow it to continue doing so for the next several years.

2. Ag Growth International Inc.: 5.1% yield

Ag Growth International Inc. (TSX:AFN) is one of the world’s leading manufacturers of portable and stationary grain handling, storage, and conditioning equipment. It pays a monthly dividend of $0.20 per share, or $2.40 per share annually, which gives its stock a 5.1% yield at current levels. The company has also maintained this monthly payment since November 2010, but its increased amount of funds from operations, including year-over-year growth of 52.4% to $15.84 million in the first quarter, could allow for an increase in the second half of this year.

3. Newalta Corporation: 3.6% yield

Newalta Corporation (TSX:NAL) is one of North America’s leading providers of engineered environmental solutions. It pays a quarterly dividend of $0.125 per share, or $0.50 per share annually, giving its stock a 3.6% yield at today’s levels. It is also worth noting that the company has increased its annual dividend payment for five consecutive years, and its consistent funds from operations could allow this streak to continue for another five years at least.

Which small-cap stock belongs in your portfolio?

Sienna Senior Living, Ag Growth International, and Newalta are three of the top dividend-paying small-cap stocks in the market. Foolish investors should take a closer look and consider buying one of them today.

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These three top stocks have delivered dividends for shareholders for decades (and even centuries!). Check out our special FREE report: "3 Dividend Stocks to Buy and Hold Forever." Click here now to get the full story!


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Fool contributor Joseph Solitro has no position in any stocks mentioned.