In this article, we discuss 10 best small-cap dividend stocks to buy now.

Small-cap stocks are companies that have a market capitalization between $300 million and $2 billion. Over the years, these companies have shown significant growth upside when compared with larger corporations. In addition to this, small-cap companies in the US have delivered strong risk-adjusted returns to shareholders than the large firms in the last 40 years, as reported by Edinburgh-based investment management company Baillie Gifford. The report also mentioned that International Smaller Companies Strategy Composite delivered an annualized return of 22.8% from its inception in 2019 to December 2021, compared with an 18.7% return of the MSCI World All Cap index during the same period.

According to a report by the Wall Street Journal, small-cap shares are more appealing to investors as they are at the cheapest level relative to their larger counterparts. Another reason for small caps to be favorable among investors is that these companies are domestically-focused and can benefit largely from strong domestic economic growth. The report referred to Wisdom Tree’s data and mentioned that the Russell 2000 index of small-caps is trading at 11.9 times earnings over the next 12 months, falling from its historic 20-year average of 17.2.

Another report published by Schroders earlier this year shed light on the overall performance of small-cap companies. The report cited the data from RBC US Equity Strategy and mentioned that earnings per share growth forecasts for small-cap companies were higher than the large-cap companies in the US. In 2014, Russell 2000 Index was projected to show a 17.80% growth in its EPS, compared with a 12% growth for the S&P 500.

Over the years, small-cap stocks have outperformed large-cap companies when dividends reinvested are included. Julius Baer, a Zurich-based private banking company, referred to the Credit Suisse Global Investments 2018 report, mentioning that the dollar invested in a small-cap company in 1926 would have been seven times more in value by the end of 2018 than the one invested in a large company, including reinvested dividends.

In addition to small-cap companies, investors are also focusing on dividend stocks as they provide regular income to them in times of financial volatility. Dividend Aristocrats like Caterpillar Inc. (NYSE:CAT), Chevron Corporation (NYSE:CVX), and Pentair plc (NYSE:PNR) are popular among investors as they have raised their dividends for over 25 years. In view of this, we will discuss small-cap dividend aristocrats to buy now.

Our Methodology:

The dividend companies mentioned below have a market capitalization between $300 million to $2 billion. We analyzed these companies through their financial health, business fundamentals, and dividend policies. The stocks are ranked according to their dividend yields, as of November 22.

Best Small-Cap Dividend Stocks to Buy Now

10. Calavo Growers, Inc. (NASDAQ:CVGW)

Dividend Yield as of November 22: 0.77%

Calavo Growers, Inc. (NASDAQ:CVGW) is a California-based farming company that specializes in farm-related products. The company distributes its products to restaurants, stores, and individual customers around the world. In September, Lake Street lifted its price target on the stock to $60 with a Buy rating on the shares, highlighting the company’s recent quarterly earnings and its underlying potential.

Calavo Growers, Inc. (NASDAQ:CVGW) currently pays a quarterly dividend of $0.285 per share and has a dividend yield of 0.77%, as of November 22. The company is one of the best dividend stocks on our list as it has paid consistent dividends since it went public in 2002. Its dividend consistency makes it a good option for dividend portfolios alongside famous blue chip companies like Caterpillar Inc. (NYSE:CAT), Chevron Corporation (NYSE:CVX), and Pentair plc (NYSE:PNR).

In fiscal Q3 2022, Calavo Growers, Inc. (NASDAQ:CVGW) reported revenue of $342 million, which showed a 20% growth from the same period last year. The company’s strong cash flow helped it to pay $16 billion of debt during the quarter. At the end of July, it had over $2.5 million available in cash and cash equivalents, compared with $1.8 million during the same period last year.

At the end of Q3 2022, 11 hedge funds in Insider Monkey’s database owned stakes in Calavo Growers, Inc. (NASDAQ:CVGW), the same as in the previous quarter. The collective value of these stakes is over $29 million. Renaissance Technologies was the company’s leading stakeholder in Q3.

9. The Andersons, Inc. (NASDAQ:ANDE)

Dividend Yield as of November 22: 1.92%

The Andersons, Inc. (NASDAQ:ANDE) is an Ohio-based company that conducts businesses in commodity merchandising, renewables, and plant nutrients. The company is one of the best dividend stocks on our list as it has raised its payouts consistently for the past 26 years. It currently pays a quarterly dividend of $0.18 per share and has a dividend yield of 1.92%, as of November 22.

In the third quarter of 2022, The Andersons, Inc. (NASDAQ:ANDE) posted revenue of $4.22 billion, up 40.7% from the same period last year. Its operating cash flow for the quarter came in at $568.4 million, compared with $364.6 million in the prior-year period. The company also started executing share repurchases during the quarter under its $100 million board authorization.

The Andersons, Inc. (NASDAQ:ANDE) was a part of 16 hedge fund portfolios in Q3 2022, up from 15 in the previous quarter. The stakes owned by these hedge funds have a total value of over $34.5 million. Portolan Capital Management owned the largest stake in the company in Q3.

8. Smith & Wesson Brands, Inc. (NASDAQ:SWBI)

Dividend Yield as of November 22: 3.51%

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is an American firearm manufacturing company that specializes in pistols, revolvers, rifles, and other related products. The company missed Street estimates on various fronts in fiscal Q1 2023 earnings but showed a strong cash position. It had $110.5 million in cash available on hand and over $326 million in total assets.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) initiated its dividend policy in 2020 and has raised its dividends every year since then. It currently pays $0.10 per share in quarterly dividends and has a dividend yield of 3.51%, as of November 22. The company’s commitment to its dividends makes it one of the best dividend stocks on our list.

In September, Lake Street maintained a Buy rating on Smith & Wesson Brands, Inc. (NASDAQ:SWBI) with a $22 price target. The firm mentioned that the company is well-positioned to offer long-term investment options to investors.

As of the end of September 2022, 12 hedge funds in Insider Monkey’s database owned stakes in Smith & Wesson Brands, Inc. (NASDAQ:SWBI), compared with 13 in the previous quarter. These stakes have a total worth of $49.6 million.

7. Hanmi Financial Corporation (NASDAQ:HAFC)

Dividend Yield as of November 22: 3.83%

Hanmi Financial Corporation (NASDAQ:HAFC) is a California-based bank holding company that provides commercial and small business association loans. Since the start of the year, the stock delivered a 7.72% return to shareholders, while its 12-month returns came in at 8.12%.

Hanmi Financial Corporation (NASDAQ:HAFC) raised its dividend multiple times after slashing its payout during the pandemic in 2020. The company currently pays a quarterly dividend of $0.25 per share, having raised it by 13% in July. The stock’s dividend yield on November 22 came in at 3.83%.

In the third quarter of 2022, Hanmi Financial Corporation (NASDAQ:HAFC) reported a 15.4% year-over-year growth in its revenue at $72 million. The company’s deposits stood at $6.2 billion, up 7.2% from the same period last year.

At the end of Q3 2022, 11 hedge funds tracked by Insider Monkey owned stakes in Hanmi Financial Corporation (NASDAQ:HAFC), compared with 13 in the previous quarter. The collective value of these stakes is nearly $26 million. Among these hedge funds, AQR Capital Management was the company’s leading stakeholder in Q3.

6. Nu Skin Enterprises, Inc. (NYSE:NUS)

Dividend Yield as of November 22: 4.08%

Nu Skin Enterprises, Inc. (NYSE:NUS) is an American marketing company that sells and develops personal care products and dietary supplements. In October, Jefferies maintained a Buy rating on the stock with a $45 price target, presenting a positive stance on personal care companies. The firm also appreciated the company’s growing sales over the years.

In Q3 2022, Nu Skin Enterprises, Inc. (NYSE:NUS) reported revenue of $537.8 million and an EPS of $0.47. The company ended the quarter with over $294 million in cash and cash equivalents and had $777.8 million in total assets. During the quarter, it paid over $19 million in dividends, which makes it one of the best dividend stocks on our list.

On November 2, Nu Skin Enterprises, Inc. (NYSE:NUS) declared a quarterly dividend of $0.385 per share, in line with its previous dividend. The company has been raising its dividends consistently for the past 20 years. The stock’s dividend yield came in at 4.08%, as of November 22. In addition to popular dividend stocks like Caterpillar Inc. (NYSE:CAT), Chevron Corporation (NYSE:CVX), and Pentair plc (NYSE:PNR), NUS is another prominent dividend stock to hold.

At the end of the third quarter of 2022, 13 hedge funds in Insider Monkey’s database owned stakes in Nu Skin Enterprises, Inc. (NYSE:NUS), up from 12 in the previous quarter. These stakes have a collective value of over $126 million. Among these hedge funds, Renaissance Technologies was the company’s leading stakeholder, owning stakes worth over $84.8 million.

5. Midland States Bancorp, Inc. (NASDAQ:MSBI)

Dividend Yield as of November 22: 4.31%

Midland States Bancorp, Inc. (NASDAQ:MSBI) is an American bank holding company that provides personal and commercial banking services to its consumers. In September, Raymond James initiated its coverage of the stock with a Market Perform rating as the bank sector is well-positioned to benefit from rising interest rates. The firm also appreciated the company’s higher credit metrics.

In Q3 2022, Midland States Bancorp, Inc. (NASDAQ:MSBI) reported revenue of $80 million, which showed a 20% growth from the same period last year. The company had over $313 million available in cash and cash equivalents, compared with $270 million in the previous quarter. Its net income for the quarter stood at over $23.5 million.

Midland States Bancorp, Inc. (NASDAQ:MSBI) is one of the best dividend stocks on our list as the company has raised its payouts for 22 years in a row. The company currently offers a quarterly dividend of $0.29 per share and has a dividend yield of 4.31%, as of November 22.

Midland States Bancorp, Inc. (NASDAQ:MSBI) was a part of 10 hedge fund portfolios at the end of Q3 2022, according to Insider Monkey’s data. The stakes owned by these hedge funds have a total value of over $9.3 million. Two Sigma Advisors was one of the company’s leading stakeholders in Q3.

4. Ethan Allen Interiors Inc. (NYSE:ETD)

Dividend Yield as of November 22: 4.53%

Another best dividend stock on our list is Ethan Allen Interiors Inc. (NYSE:ETD), which is an American furniture company with over 300 stores across the country. The company pays a quarterly dividend of $0.32 per share, having raised it by 10%in April this year. In the previous quarter, it also paid a special dividend of $0.50 per share to shareholders. The stock has a dividend yield of 4.53%, as recorded on November 22.

In fiscal Q1 2023, Ethan Allen Interiors Inc. (NYSE:ETD) reported revenue of $214.5 million, which showed a 17.7% growth from the same period last year. The company’s operating cash flow came in at $38.4 million and returned $20.9 million to shareholders in dividends during the quarter.

As of the close of Q3 2022, 13 hedge funds in Insider Monkey’s database owned stakes in Ethan Allen Interiors Inc. (NYSE:ETD), the same as in the previous quarter. These stakes are worth $19.5 million collectively.

3. B&G Foods, Inc. (NYSE:BGS)

Dividend Yield as of November 22: 5.74%

B&G Foods, Inc. (NYSE:BGS) is a New Jersey-based food company that provides related foods and services to its consumers. RBC Capital maintained a Sector Perform rating on the stock in November with a $16 price target, highlighting the company’s quarterly earnings.

B&G Foods, Inc. (NYSE:BGS) currently pays a quarterly dividend of $0.19 per share and has a dividend yield of 5.74%, as of November 22. The company has paid regular dividends to shareholders for 73 quarters since its IPO in 2004, which makes it one of the best dividend stocks to buy.

In the third quarter of 2022, B&G Foods, Inc. (NYSE:BGS) reported a 2.6% year-over-year growth in its revenue at $528.4 million. For FY22, the company expects its net sales to fall between $2.10 billion to $2.14 billion.

At the end of September 2022, 10 hedge funds in Insider Monkey’s database owned stakes in B&G Foods, Inc. (NYSE:BGS), the same as in the previous quarter. The collective value of these stakes is over $15.2 million.

2. Universal Health Realty Income Trust (NYSE:UHT)

Dividend Yield as of November 22: 5.50%

Universal Health Realty Income Trust (NYSE:UHT) is an American real estate investment trust company that manages properties related to healthcare and human services. In Q3 2022, the company reported revenue of $22 million, up 4.5% from the same period last year. Its operating cash flow came in at $699 million, compared with $562 million in the prior-year period. The company paid over $44 million in dividends to shareholders during the quarter.

Universal Health Realty Income Trust (NYSE:UHT) is one of the best dividend stocks on our list as it holds the second-longest dividend growth streak in the REIT sector, having raised its payouts for 37 years. The company pays a quarterly dividend of $0.71 per share for a dividend yield of 5.50%, as of November 22.

At the end of Q3 2022, 4 hedge funds tracked by Insider Monkey owned stakes in Universal Health Realty Income Trust (NYSE:UHT), down from 5 in the previous quarter. The collective value of these stakes is over $12.5 million.

1. PetMed Express, Inc. (NASDAQ:PETS)

Dividend Yield as of November 22: 6.10%

PetMed Express, Inc. (NASDAQ:PETS) is a Florida-based online pet pharmacy that sells prescription and non-prescription pet medication. Jefferies maintained a Hold rating on the stock in September with a $20 price target, appreciating the company’s customer growth and improving performance.

On November 30, PetMed Express, Inc. (NASDAQ:PETS) declared a quarterly dividend of $0.30 per share, which fell in line with its previous dividend. The stock’s dividend yield on November 22 came in at 6.10%.

The number of hedge funds tracked by Insider Monkey owning stakes in PetMed Express, Inc. (NASDAQ:PETS) grew to 15 in Q3 2022, from 11 in the previous quarter. The collective worth of these stakes is nearly $43 million. Among these hedge funds, Renaissance Technologies was the company’s leading stakeholder in Q3.

You can also take a look at 14 Best Blue Chip Dividend Stocks to Buy and 11 High Dividend Stocks Picked By Billionaire Gabelli

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Disclosure. None. 10 Best Small-Cap Dividend Stocks to Buy Now is originally published on Insider Monkey.