The Globe and Mail attempts to identify Canadian small-cap dividend
payers in its Tuesday edition. The Globe's Craig McGee writes in the Number Cruncher column that the S&P/TSX composite total return index
has posted a gain of 18.9 per cent
so far in 2016, compared with a
loss of 8.3 per cent last year. Even more impressive has been
the surge in the small caps. The
S&P/TSX small-cap total return
index is currently up 31.3 per cent
year to date, bouncing back from
a loss of 13.3 per cent in 2015. Within the small-cap subset, Mr. Craig
saw dividend payers offer a better
safety cushion, dropping by
only 7.6 per cent in 2015.
The lower volatility was also
present on the upside -- but, including
only dividend-payers, the
small-cap index would still be up
about 24 per cent this year. Mr. Craig searched for smaller
dividend-paying firms that
may offer attractive returns with
possibly less volatility. He limited results to companies
with market caps between
$100-million and $1.5-billion,
dividend yields of at least 2
per cent and dividend payout ratios
less than 100 per cent. He recommends Intertape Polymer Group, North West Co., Sleep Country Canada Holdings, ZCL Composites and Enerflex.
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