High Dividend Yield Stocks in Small Cap

The table below shows the high dividend yield stocks in small cap based on the Highest Market Capitalization.

What Are The High Dividend Yield Stocks in Small Cap?

High dividend yield stocks in small-cap refer to companies within the small-cap segment that offer relatively high dividend payouts relative to their share prices. These stocks are appealing to income-focused investors seeking regular dividends while potentially benefiting from the growth prospects of smaller companies.

Features Of High Dividend Yield Stocks in Small Cap

The important feature of high dividend yield stocks in small-cap companies is their potential to offer substantial returns through regular dividend payments, despite their smaller market capitalization.  

1. Higher Risk-Reward Ratio: Small-cap stocks often carry higher risks due to market volatility but offer significant rewards.
2. Niche Market Operations: These companies often dominate smaller, specialized markets, leading to consistent cash flow.
3. Potential for Growth: Small-cap stocks have more room for growth, which can lead to higher future dividends.
4. Less Analyst Coverage: Limited coverage means these stocks can be undervalued, presenting hidden opportunities.
5. Management Ownership: Higher insider ownership aligns management’s interests with shareholders, potentially leading to better dividend policies.

Best High Dividend Yield Stocks in Small Cap

The table below shows the best high dividend yield stocks in small cap based on the highest day Volume.

Top High Dividend Yield Stocks in Small Cap in India

The table below shows the top high dividend yield stocks in small cap in India based on 1-Year Return. 

Factors To Consider When Investing In High Dividend Yield Stocks in Small Cap

The factors to consider when investing in high dividend yield stocks in small-cap companies include evaluating the financial health of the company to ensure sustainable dividend payouts.

1. Dividend History: Examine the company’s track record of consistent and growing dividend payments, which indicates the reliability and sustainability of future payouts.
2. Earnings Stability: Assess the stability of the company’s earnings to gauge the likelihood of continued dividend payments, as fluctuating earnings can lead to inconsistent dividends.
3. Debt Levels: Review the company’s debt-to-equity ratio to ensure it isn’t over-leveraged, as high debt can impact dividend sustainability and overall financial health.
4. Industry Position: Consider the company’s position within its industry, as market leaders tend to have more reliable cash flows, supporting stable dividend payments.
5. Growth Potential: Analyze the company’s growth potential, as small caps with strong growth prospects can offer both dividend income and capital appreciation, enhancing overall returns.

How To Invest In High Dividend Yield Stocks in Small Cap?

To invest in high dividend-yield small-cap stocks, start by researching companies with a strong dividend history, stable earnings, and low debt levels. Diversify your investments to spread risk, and consider long-term potential for both income and growth. Open an account with Alice Blue for easy access to investment options.

Advantages Of Investing In High Dividend Yield Stocks in Small Cap

The primary advantage of investing in high dividend-yield small-cap stocks is the potential for higher income streams compared to larger companies, combined with the possibility of capital appreciation.

1. Higher Dividend Yield: Small-cap stocks often provide higher yields, offering attractive income opportunities for investors seeking regular cash flow.
2. Growth Potential: Small caps have significant growth potential, which can lead to capital appreciation alongside dividend income, enhancing overall returns.
3. Diversification: Including high dividend-yield small-cap stocks in your portfolio can provide diversification benefits, spreading risk across different market segments.
4. Undervalued Opportunities: Small caps are often undervalued due to less coverage, providing opportunities to invest in high-yield stocks at attractive prices.
5. Long-Term Wealth Creation: With a mix of high dividend yields and growth potential, small-cap stocks can contribute significantly to long-term wealth accumulation through compounding returns.

Risks Of Investing In High Dividend Yield Stocks in Small Cap

The main risk of investing in high dividend-yield small-cap stocks is their volatility, which can lead to significant fluctuations in stock prices and dividend payouts.

1. Market Volatility: Small-cap stocks are generally more volatile, leading to larger price swings and potential risks to your invested capital and expected returns.
2. Dividend Cuts: Companies may reduce or eliminate dividends during financial stress or poor performance, especially in small caps with less stable earnings.
3. Liquidity Issues: Small-cap stocks often have lower trading volumes, which can lead to liquidity issues, making it challenging to buy or sell shares at desired prices.
4. Higher Risk of Default: Small-cap companies typically have less financial stability, increasing the risk of default or bankruptcy, which could result in a total loss of investment.
5. Limited Information: Small-cap stocks often receive less coverage from analysts, leading to a lack of readily available information, making informed investment decisions more difficult.

Introduction to High Dividend Yield Stocks in Small Cap

Advanced Enzyme Technologies Ltd

The Market Cap of Advanced Enzyme Technologies Ltd is recorded at Rs 4,843.66 crore. The stock’s monthly return stands at 7.31%. Its one-year return is 25.24%. The stock is currently 6.28% away from its 52-week high.

Advanced Enzyme Technologies Limited, an India-based company, specializes in the production of enzymes and probiotics. 

The company focuses on researching, developing, manufacturing, and marketing a range of around 400 products derived from over 68 native enzymes and probiotics. These products cater to various industries such as human healthcare, nutrition, animal nutrition, baking, fruit and vegetable processing, brewing and malting, and more.  

Styrenix Performance Materials Ltd

The Market Cap of Styrenix Performance Materials Ltd is Rs. 4631.70 crores. The stock’s monthly return is 15.34%. Its one-year return is 139.32%. The stock is 5.21% away from its 52-week high.

Styrenix Performance Materials Limited, an India-based company, is a manufacturer of plastic resins including Absolac (ABS), which is produced from a combination of Acrylonitrile, Butadiene, and Styrene. 

ABS is commonly used in the production of home appliances, automobiles, consumer durables, and business machines. The company also produces other resins such as Polystyrene (PS) and ABSOLAN (SAN), which are utilized in various products like lighting, stationeries, novelties, refrigerators, and cosmetic packaging.  

Hawkins Cookers Ltd

The Market Cap of Hawkins Cookers Ltd is Rs. 4448.43 crore. The stock’s monthly return is 8.83%. Its one-year return is 28.30%. The stock is 7.16% away from its 52-week high.

Hawkins Cookers Limited specializes in manufacturing, trading, and selling kitchenware, including pressure cookers and cookware. 

The company provides a wide range of approximately 88 models of pressure cookers across 13 different types, such as Hawkins Classic, Hawkins Contura, and more. They also offer an extensive selection of Futura Cookware, including Tavas, frying pans, saucepans, and handis. Their products are available in hard anodized and nonstick categories. 

Tide Water Oil Co India Ltd

The Market Cap of Tide Water Oil Co India Ltd is Rs. 4410.85 crores. The stock’s monthly return is 10.21%. Its one-year return is 113.64%. The stock is 13.21% away from its 52-week high.

Tide Water Oil Co. (India) Ltd. is involved in the production and promotion of lubricants. The company offers its products in three main categories: automotive lubricants, industrial lubricants, and specialities. 

Its range of automotive lubricants includes oils for two-wheelers, motorcycles, scooters, passenger cars, commercial vehicles, and tractors, as well as various greases and oils for specific machinery and equipment. In the industrial lubricants category, they provide a variety of oils and greases for different applications such as machinery, turbines, hydraulics, compressors, and metalworking processes.  

LG Balakrishnan & Bros Ltd

The Market Cap of LG Balakrishnan & Bros Ltd is Rs. 4273.92 crore. The stock’s monthly return is -7.17%. Its one-year return is 28.82%. The stock is 16.76% away from its 52-week high.

L.G. Balakrishnan & Bros Limited is an Indian company that specializes in manufacturing chains, sprockets, and metal-formed parts for automotive use. The company operates in two segments: Transmission and Metal Forming. 

The transmission segment offers a wide range of products such as chains, sprockets, tensioners, belts, and brake shoes. The metal forming segment focuses on producing precision sheet metal parts through fine blanking, machined components, and wire drawing products for internal use and other manufacturers. 

West Coast Paper Mills Ltd

The Market Cap of West Coast Paper Mills Ltd is Rs. 4,166.03 crore. The stock’s monthly return is -10.54%. Its one-year return is 29.68%. The stock is 29.21% away from its 52-week high.

West Coast Paper Mills Limited, an Indian company, specializes in the production of paper for printing, writing, and packaging. The company operates in two main segments: Paper/Paperboard in Dandeli, and Telecommunication Cables in Mysore. 

It serves various industries in India, such as printing, writing, publishing, stationery, notebooks, and packaging. The Dandeli plant is a fully integrated pulp and paper plant that manufactures a variety of paper and paperboard products.  

Greaves Cotton Ltd

The Market Cap of Greaves Cotton Ltd is Rs. 3842.92 crore. The stock’s monthly return is 2.48%. Its one-year return is 18.54%. The stock is 16.42% away from its 52-week high.

Greaves Cotton Limited is a comprehensive energy solutions company that manufactures clean energy powertrain solutions for various types of engines, generator sets, farm equipment, e-mobility, and aftermarket parts and services. 

The company operates in four main segments: Engines, Electric Mobility, Cables and Control Levers, and Others. The Engines segment covers engine applications in farm equipment, generator sets, and spare parts. The Electric Mobility segment focuses on the production and sale of electric vehicles and their components.  

Kalyani Steels Ltd

The market cap of Kalyani Steels Ltd is Rs. 3,841.91 crore. The stock’s monthly return is -10.42%. Its one-year return is 92.35%. The stock is 30.24% away from its 52-week high.

Kalyani Steels Limited specializes in manufacturing and selling iron and steel products, specifically focusing on forging and engineering high-quality carbon and alloy steels. 

The company operates an integrated manufacturing facility at Hospet Works in Karnataka, offering a wide range of steel products in various applications, grades, and sizes. Its product portfolio includes rolled bars for automotive and engineering applications, round cast for the seamless tube industry, chrome, chrome-manganese, chrome-nickel, and chrome-moly steel.  

Indian Metals and Ferro Alloys Ltd

The Market Cap of Indian Metals and Ferro Alloys Ltd is Rs 3793.78 crore. The stock’s monthly return is -5.48%. Its one-year return is 91.56%. The stock is 32.29% away from its 52-week high.

Indian Metals and Ferro Alloys Limited, a holding company based in India, is a leading producer of ferro chrome in the country. The company operates across three segments: Ferro Alloys, Power, and Mining. 

It owns two captive mines located in Sukinda and Mahagiri in Jajpur, Odisha, and has a captive power generation capacity exceeding 204.55 megawatts (MW) along with a solar power capacity of around 4.55 MW. With manufacturing units at Therubali and Choudwar in Odisha, the company boasts a total production capacity of 284,000 and a smelting capacity exceeding 190 megavolt-amperes (MVA).  

Alembic Ltd

The Market Cap of Alembic Ltd is Rs. 3,769.56 crores. The stock’s monthly return is 26.93%. Its one-year return is 70.51%. The stock is 13.50% away from its 52-week high.

Alembic Limited is an Indian company involved in the development, manufacturing, and marketing of pharmaceutical products, including formulations and active pharmaceutical ingredients (APIs). 

The company operates primarily within the Pharmaceuticals segment, focusing on the production and marketing of fermentation and chemistry-based APIs. Alembic Limited also conducts research and development activities in Vadodara. The company’s key products include Azithromycin, Venlafaxine, and Telmisartan.

Top High Dividend Yield Stocks in Small Cap – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.