These 3 High-Yielding Small-Cap Stocks Are Screaming Buys

Looking to buy a small-cap dividend stock? If so, Timbercreek Mortgage Investment Corp. (TSX:TMC), McCoy Global Inc. (TSX:MCB), and Pason Systems Inc. (TSX:PSI) are three of your best options.

| More on:
The Motley Fool

As savvy investors know, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and small-cap stocks have the highest growth rates on average. Combining these two factors by investing in dividend-paying small-cap stocks can be a recipe for huge returns, so let’s take a look at three small caps with yields up to 8.6% that you could buy today.

1. Timbercreek Mortgage Investment Corp.: 8.6% yield

Timbercreek Mortgage Investment Corp. (TSX:TMC) is an active investor, owner, and manager of global real estate and related assets. It pays a monthly dividend of $0.06 per share, or $0.72 per share annually, giving its stock an 8.6% yield at today’s levels. It is also important to note that the company reduced its dividend by 10.5% in July to preserve capital and “maintain credit quality,” but I think its current rate is sustainable for the long term.

2. McCoy Global Inc.: 4.5% yield

McCoy Global Inc. (TSX:MCB) is one of North America’s largest manufacturers and distributors of high-performance tubular equipment for the oil and natural gas industries. It pays a quarterly dividend of $0.05 per share, or $0.20 per share annually, which gives its stock a 4.5% yield at current levels. Investors should also note that the company has maintained this quarterly payment since the second quarter of fiscal 2012, and its strong operational performance could allow it to continue doing so for the next several years.

3. Pason Systems Inc.: 3.6% yield

Pason Systems Inc. (TSX:PSI) is one of the world’s leading providers of specialized data management systems for drilling rigs. It pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 3.6% yield at today’s levels. The company has also increased its annual dividend payment every year since 2003, making it one of the top dividend-growth plays in its industry, and its consistent free cash flow generation could allow this streak to continue for the next several years.

Should you buy one of these high-yielding small-caps?

Timbercreek Mortgage Investment, McCoy Global, and Pason Systems are three of the top dividend-paying small-cap investment options in the market today. Foolish investors should strongly consider beginning to scale in to positions in one or all 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.

More on Dividend Stocks

space ship model takes off
Top TSX Stocks

My 5 Favourite Stocks to Buy Right Now

There are plenty of great stocks on the market. Here's a look at my favourite stocks to own for growth…

Read more »

Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution.
Dividend Stocks

3 Evergreen RRSP Stocks Every Canadian Investor Should Own

If you're looking into RRSP stocks, it's quite likely you've come across these on many, if not all, of the…

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

3 Reasons Your CPP Benefits Are More Valuable Than You Think

Holding iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) in a TFSA can supplement your CPP.

Read more »

open vault at bank
Dividend Stocks

Don’t Get Cute; Just Buy Stability: Top Defensive TSX Stocks to Buy Now

A healthy risk tolerance is essential for most investors, but many stray from the tried and tested, hoping to find…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

TFSA Investors: Buy These 3 Stocks for $3,480 Yearly Tax-Free Income

One significant benefit of a TFSA-based dividend income is that it doesn’t weigh down your tax bill.

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

A meter measures energy use.
Dividend Stocks

Is Fortis Stock a Buy, Sell, or Hold for 2025?

Fortis has increased its dividend annually for the past five decades.

Read more »