Uncover the Top Small-Cap Stocks for Dividend Growth Investors
Small-cap stocks, with market capitalizations below $2 billion, offer strong growth potential compared to larger companies in the same industries. For dividend growth investors seeking long-term income, focusing on small-cap stocks could be a lucrative strategy.
Farmers & Merchants Bancorp (FMCB), Gorman-Rupp (GRC), and Atrion Corporation (ATRI) are three small-cap stocks worth considering. These companies not only have dividend yields above the market average but also exhibit long-term dividend growth potential.
Farmers & Merchants Bancorp (FMCB) is a locally owned community bank in California with a market cap of around $700 million. Despite flying under the radar due to its small size, FMCB has paid dividends uninterrupted for 89 years. With a conservative management approach and a focus on expansion, FMCB is positioned for steady growth in the coming years.
Gorman-Rupp (GRC) is an industry leader in manufacturing pumps and pumping systems, generating annual sales of nearly $700 million. With a strong international presence and stable margins, GRC is forecasted to achieve 7% earnings per share growth through high single-digit sales growth.
Atrion Corporation (ATRI) specializes in developing medical products for various applications. With a robust balance sheet and consistent dividend growth, ATRI is set for continued success in the medical field.
Overall, these small-cap stocks provide investors with the opportunity to benefit from both dividend income and long-term growth potential. By diversifying your portfolio with these promising companies, you can secure your financial future and enjoy the rewards of investing in small-cap stocks.