3 Top Small Caps With Yields up to 9.1%

Interested in small caps and dividend stocks? If so, consider investing in Chorus Aviation Inc. (TSX:CHR), Acadian Timber Corp. (TSX:ADN), and Crius Energy Trust (TSX:KWH.UN) today.

| More on:

If you’re a dividend investor with cash on hand that you’re ready to put to work, then I’ve got three small caps that I think you will love. Let’s take a closer look at each, so you can determine which would fit best in your portfolio.

Chorus Aviation Inc.

Chorus Aviation Inc. (TSX:CHR) is a dividend-paying holding company that owns a number of companies involved in the aviation industry, including Jazz Aviation LP, Voyageur Aviation, and Chorus Aviation Capital.

Chorus currently pays a monthly dividend of $0.04 per share, equal to $0.48 per share annually, which gives it a yield of about 4.9% at the time of this writing.

Foolish investors should make the following two notes about Chorus’s dividend.

First, it has maintained its current monthly rate of $0.04 per share since March 2015, which makes it one of the most reliable income stocks in the aviation industry, in my opinion.

Second, I think Chorus’s very strong financial performance, including its 13.6% year-over-year increase in adjusted EBITDA to $203 million and its 28.6% year-over-year increase in adjusted net income to $91.1 million in the first nine months of 2017, will allow it to continue to maintain its current monthly dividend rate for the foreseeable future, or allow it to announce a slight hike when it reports its fourth-quarter earnings results in February.

Acadian Timber Corp.

Acadian Timber Corp. (TSX:ADN) is one of North America’s leading suppliers of primary forest products in eastern Canada and the northeastern United States, and it’s the third-largest timberland operator in New Brunswick and Maine with approximately 2.4 million acres of land under management.

Acadian currently pays a quarterly dividend of $0.275 per share, equal to $1.10 per share annually, which gives its stock a 5.8% yield at the time of this writing.

It’s important to make the following two notes about Acadian’s dividend.

First, the company has raised its annual dividend payment each of the last two years, and its 10% hike in February has it positioned for 2017 to mark the third straight year with an increase.

Second, Acadian has a long-term dividend-payout target of 95% of its free cash flow, so I think its consistently strong growth, including its 12.3% year-over-year increase to $14.72 million in the first nine months of 2017, will allow it to continue to deliver dividend growth to its shareholders in the years ahead.

Crius Energy Trust

Crius Energy Trust (TSX:KWH.UN) provides investors with a distribution-producing investment through its 100% ownership interest in Crius Energy, LLC, which provides innovative electricity, natural gas, and solar products to 1.3 million residential and commercial customers in 19 U.S. states and the District of Columbia.

Crius currently pays a monthly distribution of $0.0684 per unit, equating to $0.8204 per unit on an annualized basis, which gives it a yield of about 9.1% at the time of this writing.

Foolish investors should make the following two notes about Crius’s distribution.

First, it was already on track for 2017 to mark the second consecutive year in which it has raised its annual distribution, and its 2% hike last month has it on track for 2018 to mark the third consecutive year with an increase.

Second, I think Crius’s very strong growth of distributable cash, including its 7.2% year-over-year increase to $41.5 million in its trailing 12-month period ended on September 30, will allow it to continue to grow its distribution in 2019 and beyond.

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. Acadian Timber is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

Dividend Stocks

2 Top Telecommunication Stocks to Buy on the TSX Today

Two telco stocks, but not the dominant industry players, are buying opportunities on the TSX today.

Read more »

worry concern
Dividend Stocks

Is Now Actually the Right Time to Buy BCE Stock?

Looking for a great stock to buy at a serious discount? It’s the right time to buy BCE (TSX:BCE) stock…

Read more »

Illustration of bull and bear
Dividend Stocks

Defensive Sectors: A Safe Haven for Canadian Investors in a Bear Market       

As uncertainty continues to increase in the stock market, buying stocks in defensive sectors can help protect your capital.

Read more »

question marks written reminders tickets
Dividend Stocks

Up 10% in a Month, Is Loblaw Stock a Buy?

Loblaw stock (TSX:L) has seen a strong increase in share price in the last month, but could more be on…

Read more »

top TSX stocks to buy
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $10,000

Investing in monthly paying dividend ETFs can help you generate a steady stream of recurring passive income for life.

Read more »

money cash dividends
Dividend Stocks

Passive Income: How to Make $215.56 Per Month Tax Free

Passive income is easy to make; all it takes is consistency and contributions, and, of course, the right dividend stock…

Read more »

Dividend Stocks

Why Utility Stocks Could Be Canada’s Safeguard Against Growing Rates

Utility stocks like Fortis Inc (TSX:FTS) can do well, despite rising interest rates.

Read more »

eat food
Dividend Stocks

The Best Canadian Food Stocks in December 2023

Investors can add the best Canadian food stocks to their portfolios for capital protection and stability.

Read more »