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3 Small Caps With Excellent Dividends

If you’re a fan of small caps, high dividends, and dividend-growth stocks, then this article is a dream come true. I’ve scoured the market and found three stocks that are all of the above, so let’s take a quick look at each to determine which would fit best in your portfolio.

1. Pason Systems Inc.

Pason Systems Inc. (TSX:PSI) is one of the world’s leading providers of specialized data management systems and solutions for drilling rigs, including data acquisition, well-site reporting, and remote communications. It currently pays a dividend of $0.17 per share quarterly, or $0.68 per share annually, which gives its stock a 3.8% yield at today’s levels.

It is also important for investors to note that Pason Systems has raised its annual dividend payment for 12 consecutive years, and I think its ample free cash flow, including $75.4 million in the first nine months of fiscal 2015, could allow this streak to continue in 2016.

2. Corus Entertainment Inc.

Corus Entertainment Inc. (TSX:CJR.B) is one of the largest integrated media and entertainment companies in Canada. It currently pays a dividend of $0.095 per share monthly, or $1.14 per share annually, which gives its stock a 10.65% yield at today’s levels.

Investors must also note that Corus has raised its annual dividend payment for 12 consecutive years, and its 4.6% increase in February 2015 puts it on pace for 2016 to mark the 13th consecutive year with an increase.

3. Plaza Retail REIT

Plaza Retail REIT (TSX:PLZ.UN) is one of Canada’s largest owners and operators of commercial real estate with 307 properties totaling approximately seven million square feet of gross leasable area. It currently pays a distribution of $0.02167 per share monthly, or $0.26 per share annually, which gives its stock a 5.8% yield at today’s levels.

It is also important for investors to note that Plaza has raised its annual distribution for 12 consecutive years, and its 4% increase in November 2015, which is effective for its January 2016 payment, puts it on pace for 2016 to mark the 13th consecutive year with an increase.

Should you buy one of these small caps today?

Pason Systems, Corus Entertainment, and Plaza Retail REIT are three of the top small-cap dividend stocks in the market. All Foolish investors should take a closer look and strongly consider initiating positions in 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. Pason Systems is a recommendation of Stock Advisor Canada.

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