3 Small Caps With Excellent Dividends

Pason Systems Inc. (TSX:PSI), Corus Entertainment Inc. (TSX:CJR.B), and Plaza Retail REIT (TSX:PLZ.UN) have high yields and track records of increasing their rates. Which should you buy today?

| More on:
The Motley Fool

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.

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.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »