As savvy investors know, 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, investment goals, and risk tolerance, maybe a diversified portfolio full of them. With this in mind, let’s take a look at three small-cap stocks with dividend yields up to 6.2% to consider buying today.
1. Valener Inc.: 6.2% yield
Valener Inc. (TSX:VNR) is one of the leading distributors of natural gas to the industrial and residential markets in North America. It pays a quarterly dividend of $0.26 per share, or $1.04 per share annually, giving its stock a 6.2% yield at today’s levels. It is also important to note that the company increased its dividend by 4% in February as a result of its increased free cash flow, and it stated that it expects to grow its dividend by 4% over the next three fiscal years as well, making it a great dividend-growth play.
2. Acadian Timber Corp.: 4.9% yield
Acadian Timber Corp. (TSX:ADN) is one of the leading suppliers of primary forest products in eastern Canada and the northeastern United States. It pays a quarterly dividend of $0.225 per share, or $0.90 per share annually, which gives its stock a 4.9% yield at current levels. The company also increased its dividend by 9.1% in February as a result of strong operational performance, and I think this could become an ongoing theme over the next several years.
3. New Flyer Industries Inc.: 4% yield
New Flyer Industries Inc. (TSX:NFI) is one of the largest manufacturers of heavy duty transit buses in North America. It pays a monthly dividend of $0.052 per share, or $0.62 per share annually, giving its stock a 4% yield at today’s levels. Like Acadian Timber, New Flyer increased its dividend by 6.6% in May as a result of its strong operational performance, and this too could become an ongoing theme over the next several years.
Which of these small-caps belong in your portfolio?
Valener, Acadian Timber, and New Flyer Industries are three of the top small-cap dividend stocks in the market today. Long-term investors should strongly consider establishing positions in at least one of them.
