Postive returns of Small Cap Dividend Stocks

Posted by Tim

October 4, 2007

	No. of Companies	% of Companies With Positive Returns	Average Return
Large Cap, Paid Dividend	157	25%	(27%)
Large Cap, No Dividend	73	4%	(70%)
Small Cap, Paid Dividend	721	64%	20%
Small Cap, No Dividend	1056	24%	(29%)

*Price data courtesy of Capital IQ. Returns from Aug. 14, 2000, to March 15, 2003.

I have copied the above chart from a Motley Fool article that I found interesting. It tracks a shows how the different disciplines/sectors performed during the last bear market. Of striking note is the out performance of small cap dividend paying stocks.

My personal search for outstanding companies and stocks tends to put me in this camp. I like above market dividends from companies not well followed by Wall Street. Large caps get pummeled in mass when the market turns and none dividend paying stocks have no “floor” to hold them up when the bears blood is up. “Metaphor attack!!!”

The current bear market fear seems to be unfounded, but it is good to own a range of stocks that can out perform in good times and bad.

Small Cap