Photo by Blogging Guide on Unsplash

Looking for growth in the dividend world? Small caps are in for a rollercoaster ride, but can bring a lot of growth to your portfolio! Often overlooked, these companies still tend to outperform large caps. Here are their pros and cons as well as our best picks in the small caps category! Which one is your favorite?

Audio Length: 00:36:33

You’ll Learn

• Small-caps’ definition evolved over time since the market keeps getting larger. Today, we could say that companies with a market cap under $1B to $2B are in this category.
• Small-cap businesses show many advantages: they are less followed, they could get popular and surge, they show more opportunities for growth, and they tend to outperform large-cap stocks.
• With such high potential also comes higher risks: volatility, low volumes trades, and they could drop and never come back.
• What portion of your portfolio should these companies take? And which type of investors are best suited for them?
• Why are most of our top ideas in the Canadian Market? Is it because of its size?
• Learn more about our best picks’ business model and our investment thesis for: Apogee (APOG), LeMaitre Vascular (LMAT), Jamieson Wellness (JWEL.TO), Aecon Group (ARE.TO), Canadian Net REIT (NET.UN.V), and Exco Technologies (XTC.TO).