Small Stocks Packing Big Dividend Punch
2.30%December 16 | MyPlanIQ portfolio symbol P_35131

As we continue to look for alternatives to manage our way through the current uncertainties, we pick up a selection from the Fool's Dan Caplinger. He is looking at dividend bearing equities from smaller companies. Not all US equities behave in the same way and sometimes, smaller cap companies give you better value.

It is important to note that generally, in times of stress, investors move to the safety of large cap stocks and so these may be considered too risky. However, they are considered because they provide some diversification, which may be welcomed by some.

Dan's approach to selecting the stocks was to review the WisdomTree SmallCap Dividend ETF (DES) which uses a methodology that weights small-cap companies by their dividend payout. Here are the top stocks with the largest weighting in the ETF:

Source: WisdomTree; Yahoo! Finance.