Looking for growth in the dividend world? Small caps are in for a rollercoaster ride, but can bring a lot of growth to your portfolio! Often overlooked, these companies still tend to outperform large caps. Here are their pros and cons as well as our best picks in the small caps category! Which one is your favorite?
You can download the Top Stocks for 2022 Book excerpt here.
You’ll Learn
- Small-caps’ definition evolved over time since the market keeps getting larger. Today, we could say that companies with a market cap under $1B to $2B are in this category.
- Small-cap businesses show many advantages: they are less followed, they could get popular and surge, they show more opportunities for growth, and they tend to outperform large-cap stocks.
- With such high potential also comes higher risks: volatility, low volumes trades, and they could drop and never come back.
- What portion of your portfolio should these companies take? And which type of investors are best suited for them?
- Why are most of our top ideas in the Canadian Market? Is it because of its size?
- Learn more about our best picks’ business model and our investment thesis for: Apogee (APOG), LeMaitre Vascular (LMAT), Jamieson Wellness (JWEL.TO), Aecon Group (ARE.TO), Canadian Net REIT (NET.UN.V), and Exco Technologies (XTC.TO).
Related Content
Many dividend investors find some security in a high yield. But ignoring companies with a yield below 1% is a big mistake and we’ll explain to you why. Then, we will share concrete examples of low-yielding dividend stocks that should not be ignored.
The Dividend Triangle is a concept that Mike invented to describe the foundation of his investment strategy. It consists of three metrics: revenue growth, earnings growth and dividend growth.
The dividend triangle can help investors to narrow down their stock research and to find leaders in their market.
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If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an email.
This podcast episode has been provided by Dividend Stocks Rock.
A potential future show idea:
1) a review of financial sector companies with limited risk exposure: the 3 credit rating agencies (SPGI, Moodys, Fitch) plus the 3 major credit card companies(Amex, visa, mc)- which one has the better outlook