When searching for the best small cap stocks to add to your portfolio, there is always a risk with small to medium sized companies, but some have outperformed the average companies on a fairly consistent basis. We’ve researched the most highly recommended small cap stocks for 2019, that pay out decent yields on dividends and here are the top 10 that caught our attention because of their current and past performance records.
1. American Railcar Industries (ARII)
American Railcar Industries is actually more stable than it might first seem. While there has been risk associated with any industry depending upon the imploded coal industry, this one is different because the company does one thing only. They manufacture rail cars. There is a high demand for rail cars regardless of how well the railroads are doing because commerce in the import and export sectors is highly active and there is a turnover in old railcars with a consistent need to replace them with new ones. There have been a few slumps throughout the years, but overall, the market in this industry has been stalbe and the company has performed reliably. The Market value of American Railcar Industries is $750.4 million and the dividend yield is 4.1 percent.
2. Financial Institutions Inc.( FISI)
Financial Institutions Inc. is a financial company related to the banking industry. The stock pays dividends and it is one of the safer stock bets because the current status of the economy is good with decent credit quality that offers a degree of safety. The FISI stock as of last spot check was up by 1.43 percent and a dividend yield of 3.18 percent, which may not make you incredibly rich, but it’s a good stock to add to your portfolio, particularly if you’re wanting to diversify with investments in stock that are within the financial sector.
3. Steelcase (SCS)
Steelcase is a company that has been in operation for over 100 years. It manufactures office furniture and has had very strong earnings and is closely eyed by Wall Street fans. The company has made recent acquisitions and has a history of consistent payments with an increase in the dividends paid per share this year. It’s a small market cap company with a current yield of 3.2 percent. Steelcase stock is one of the safer options if you’re looking for a stock with a stable history that pays dividends.
4. U.S. Shipping (USS)
U.S. Shipping is a company that is engaged with the transport of petroleum. It owns a fleet of maritime tank vessels. It is one of the highest yielding stocks in its classification. It has a market cap of $330 million and a dividend yield of 9.8 percent. USS is a good bet for adding to your portfolio if you’re looking for a small market cap stock that pays dividends.
5. BlackRock Capital Investment Corporation (BKCC)
BlackRock Capital Investment Corporation, aka BlackRock Kelso Capital offers flexible financing solutions for companies in the middle market sector. The current spot check shows a price of $6.06 per share with a high dividend yield percentag of 11.54. It’s a small cap stock of $431 million and is considered to be a reasonably safe bet for inclusion in a dividend paying stock investment.
6. BGC Partners (BGCP)
BGC Partners engages in brokerage and market data services to institutional class clients such as brokers and dealers as well as investment banks. They work with professionals in the financial sector with a focus upon purchase and sale of futures, commodities, stocks and options as well as real estate brokerage and the provision of data for marketing firms and hedge funds. The market value of BGC Partners is $4 billion with a dividend yield of 5.8 percent.
7. Old Republic International Corp. (ORI)
Old Republic International Corp is a stock that has experienced a quarter century of increases in dividend returns due to its consistent revenue streams and the strong management of the business. The company is involved with insurance for casualty and property and is highly regarded within investment circles as one of the safer bets for a small cap stock that pays dividends with a current yield of 3.8 percent.
8. Northrim BanCorp (NRIM)
Northrim Bancorp is a financial corporation based in Anchorage, Alaska. This financial institution has attractive stock for a number of reasons. There is a low competition in its area of operation which gives it high margins in its locale, with a net interest margin of 4.71 percent and a spot check showing a 1.68 percent upswing in stock prices. This is a small cap stock that pays dividends quarterly and is worthy of consideration for inclusion in an investment porfolio.
9. Standard Register (SR)
Standard Register is a company based in Dayton, Ohio. It’s been in operation since 1912 and provides custom print labels and documents. This company is small cap with a high yield of 7.6 percent and it pays dividends quarterly.
10. Apollo Investment Corporation (AINV)
According to Reuters, Apollo Investment corporation is a non-diversified management investment company focused upon generating current income and capital appreciation. They have 89 companies within their portfolio and deal with mid to large sized companies with low investment risk throughout a broad spectrum of industries, based on credit worthiness. Current spot check reveals a price of $15.36 per share as of April 16, 2019 with a dividend yield of 11.79 percent (www.zacks.com/stock/chart/AINV/fundamental/dividend-yield-ttm) in this company that has strong asset coverage.