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.
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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.