One of the most well-known facts about investing is that dividend-paying stocks far outperform non-dividend-paying stocks over the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age and investment goals, maybe a diversified portfolio full of them. With this in mind, let’s take a look at three small-caps with yields up to 9.1% that you should consider buying today.
1. Student Transportation Inc.: 9.1% yield
Student Transportation Inc. (TSX:STB)(NASDAQ:STB) is one of the largest providers of school bus transportation services in North America. It pays a monthly dividend of $0.0464 per share, or $0.556 per share annually, giving its stock a 9.1% yield at today’s levels. It is also worth noting that the company has maintained this monthly payment for over five years, and I think it could continue to do so for another five years at least.
2. Bonterra Energy Corp.: 5.2% yield
Bonterra Energy Corp. (TSX:BNE) is one of the leading producers of oil and natural gas in Canada. It pays a monthly dividend of $0.15 per share, or $1.80 per share annually, which gives its stock a 5.2% yield at current levels. Investors should also note that Bonterra reduced its dividend by 50% earlier this year as a result of lower commodity prices, but I think the current rate is sustainable until they recover.
3. Transcontinental Inc.: 3.7% yield
Transcontinental Inc. (TSX:TCL.A) is the largest provider of printing services in Canada, with operations in print and digital media, publishing, and flexible packaging. It pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 3.7% yield at today’s levels. The company also has an extensive track record of raising its annual dividend payment, with a current streak of 13 consecutive years of increases, and I think this makes it one of the top dividend-growth plays in the market today.
Which of these small-cap dividend stocks should you buy today?
Student Transportation, Bonterra Energy, and Transcontinental represent three of the top small-cap dividend-paying investment opportunities in the market. All long-term investors should strongly consider establishing positions in at least one of them today.
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Joseph Solitro has no position in any stocks mentioned.