9 Small-Cap Stocks with Big Dividends
https://money.usnews.com/investing/dividends/slideshows/9-small-cap-stocks-with-big-dividends?src=usn_invested_nlNov. 30, 2018
Amid the volatility of October, a number of big name stocks took it on the chin.
Once-stable blue chips like industrial giant General Electric Co. (ticker: GE) and Cheerios manufacturer General Mills (GIS) declined more than 20 percent this year, creating a lot of pain despite these stocks' income potential through dividends. This has been quite a shock to those who considered these large companies to be low-risk investments.
However, equally interesting has been that a number of smaller and relatively unknown companies have managed to hang tough – and in a few cases, offer significantly larger dividends. Here’s a look at nine of them.
Steelcase (SCS). As an office furniture company with roots more than 100 years old, you wouldn't think that Steelcase is a particularly dynamic stock. However, after strong earnings in September this stock popped by double-digits and won many fans on Wall Street. The recent acquisition of Smith System, a provider of desks and other furniture to schools, also has encouraged traders.
Long-term investors have been interested in Steelcase for some time, however, thanks to its consistent history of dividends since the financial crisis; quarterly payouts have surged from 4 cents to 13.5 cents this year and show promise for continued growth after recent strong results.
Old Republic International Corp. (ORI). You may not have heard of financial stock Old Republic, but you should certainly take notice of this dividend aristocrat that has delivered more than 25 consecutive years of dividend increases thanks to strong management and reliable revenue.
ORI isn't a glamorous company, offering property and casualty insurance without the flashy offerings or investment divisions of other major financial stocks. But as the company collects regular premiums from customers, it passes along a portion back to shareholders in dividends. Old Republic has carved out a nice niche that delivers reliable income to investors who are in the know. – Jeff Reeves
