Ask any investor what sectors or market segments have been the leaders over the last year or so, and odds are, they’ll mention technology or even healthcare. And they’d be right. But there is another market segment that that has providing plenty of outperformance. You just need to take out your magnifying glass to find it.
That would be small-cap stocks.
Small-caps have long been the winners when compared to their larger twins. But lately, the outperformance has been greater than normal. Several factors such as lower taxes and immunity from trade issues have made them the market segment du jour. Perhaps more importantly, many of the tailwinds propelling smaller stocks have only made them stronger. So strong, that many have quickly become big-time dividend payers.
For income seekers and those looking for strong total returns, small-caps could be one of the best places to find it.
Don’t forget to check out overseas for some of the best dividend stocks. Find out more here.
