3 Best Small Cap Value Stocks With Growing Dividends – March 2025
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You know that small cap value delivers exceptionally strong returns over the long term. You also know that these stocks may need time to break out of their undervaluation and start delivering. You do not know how long this wait could be.
Enter the small cap value stocks with dividends. Every quarter, the stock pays you a little. Consider this as a compensation for waiting while you await your big payday. Even better, what if these dividend payments actually went up over time?
You could do as you please with these dividends, though I recommend that you reinvest these to purchase more of the most promising stocks that you are holding.
The following screen searches for small cap stocks that may be undervalued as measured by earnings, book value and sales multiples. It also requires these companies to have a 5 year history of growing sales and dividends. Additionally, we limit the dividend payout ratio to under 60% of the earnings. This gives us financially strong companies with affordable dividend payments that are likely to continue growing in the future, but for any number of reasons can be purchased at a discount today. You would of course take these names and do some more research to ensure that the reason for undervaluation is temporary, and the company is very likely to recover.
| Ticker | Company | Fwd. Yield | Dividend 5-Year Avg (%) | EPS 5-Year Avg (%) | Payout Ratio | Price / Book | Price / Earnings | Price / Sales | Sales 5-Year Avg (%) | Market Cap ($M USD) |
|---|---|---|---|---|---|---|---|---|---|---|
| CMRE | Costamare | 4.5% | 2.8% | 32.8% | 18.9% | 0.5 | 4.2 | 0.6 | 34.2% | $1,221 |
| BOTJ | Bank of the James Finl Gr | 3.1% | 12.9% | 9.8% | 20.4% | 0.9 | 7.5 | 1.4 | 6.5% | $59 |
| SCVL | Shoe Carnival | 2.4% | 26.0% | 13.2% | 19.1% | 1.0 | 8.1 | 0.5 | 3.3% | $601 |
Of these, I will be reviewing SCVL in the next few days and will post it for the Premium members. I do not invest in bank stocks, but if financials are part of your circle of competence, feel free to take a look at BOTJ. CMRE is interesting as a containership and dry bulk cargo services provider, it has the pulse on the global trade. The valuation is great and so is the dividend, but consider your views on the shifting global political landscape and decide whether this is an attractive sector to invest in today. I already have an exposure to shipping stocks in our Premium portfolio.
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Disclosure: We do not own a position in any of the stocks mentioned above in the Value Stock Guide Portfolio. However if a further review finds any of these stocks desirable, they may be added to the ...
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