5 Best Micro-Cap Dividend Stocks To Buy Now

In this article, we discuss 5 best micro-cap dividend stocks to buy now. If you want to read our detailed analysis of dividend stocks and their performance in the past, go directly to read 12 Best Micro-Cap Dividend Stocks To Buy Now. 

5. Stellus Capital Investment Corporation (NYSE:SCM)

Number of Hedge Fund Holders: 6

Stellus Capital Investment Corporation (NYSE:SCM) is a business development company (BDC) that specializes in providing financing solutions to middle-market companies in the US. It is one of the best dividend stocks on our list as the company has been making regular dividend payments to shareholders since 2012. It currently offers a monthly dividend of $0.1333 per share and has a dividend yield of 12.64%, as of December 13.

The number of hedge funds tracked by Insider Monkey owning stakes in Stellus Capital Investment Corporation (NYSE:SCM) grew to 6 in Q3 2023, from 4 in the preceding quarter. The collective value of these stakes is over $14 million.

4. ARC Document Solutions, Inc. (NYSE:ARC)

Number of Hedge Fund Holders: 7

ARC Document Solutions, Inc. (NYSE:ARC) is an American company that specializes in document management and printing services, particularly for the architectural, engineering, and construction industries. On December 7, the company declared a quarterly dividend of $0.05 per share, which was consistent with its previous dividend. It started paying dividends in 2019 and has maintained its regular payouts since then. The stock’s dividend yield on December 13 came in at 7.22%.

As of the end of September 2023, 7 hedge funds tracked by Insider Monkey owned investments in ARC Document Solutions, Inc. (NYSE:ARC), down slightly from 8 in the previous quarter. The consolidated value of these stakes is roughly $3 million.

3. Evolution Petroleum Corporation (NYSE:EPM)

Number of Hedge Fund Holders: 8

Evolution Petroleum Corporation (NYSE:EPM) is a Texas-based independent energy company that is primarily engaged in the development, production, and acquisition of oil and natural gas properties. The company does not have any dividend growth streak but it has raised its payouts multiple times over the years. It currently pays a quarterly dividend of $0.12 per share. With a dividend yield of 8.35%, as of December 13, EPM is one of the best dividend stocks on our list.

Insider Monkey’s database of Q3 2023 showed that 8 hedge funds owned stakes in Evolution Petroleum Corporation (NYSE:EPM), compared with 9 a quarter earlier. The consolidated value of these stakes is over $2.8 million. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.

2. Information Services Group, Inc. (NASDAQ:III)

Number of Hedge Fund Holders: 10

Information Services Group, Inc. (NASDAQ:III) is a leading global technology research and advisory firm specializing in digital transformation, sourcing advisory services, and market intelligence within the information technology and business process outsourcing sectors. The company started its dividend policy in 2021 and has raised its payouts two years since then, which makes III one of the best dividend stocks on our list. It currently pays a quarterly dividend of $0.045 per share and has a dividend yield of 4.22%, as of December 13.

As of the end of Q3 2023, 10 hedge funds in Insider Monkey’s database reported having stakes in Information Services Group, Inc. (NASDAQ:III), compared with 11 in the previous quarter. The collective value of these stakes is over $24 million.

1. Franklin Street Properties Corp. (NYSE:FSP)

Number of Hedge Fund Holders: 11

Franklin Street Properties Corp. (NYSE:FSP) tops our list of the best dividend stocks from the micro-cap sector. The American real estate investment trust company currently pays a quarterly dividend of $0.01 per share. The stock’s dividend yield on December 13 came in at 1.68%.

Franklin Street Properties Corp. (NYSE:FSP) was a part of 11 hedge fund portfolios at the end of Q3 2023, compared with 14 in the previous quarter, as per Insider Monkey’s database. The collective value of stakes owned by these hedge funds is over $18.2 million.

You can also take a look at Billionaire Dan Loeb’s Portfolio: Top 12 Stock Picks and 10 Stocks with 50% Upside Potential According to Analysts