RITES, Pfizer to IGL – These 15 small-cap stocks have dividend yield of up to 8%. Do you own any?

But what if these small-cap stocks could also offer additional income in the form of dividends?

According to a study by Axis Securities, 15 small-cap stocks have given dividends of up to ₹200 in the last 12 months, resulting in a dividend yield of 4-8%. Several of these small-cap stocks’ dividend yields have also beaten the returns provided by various government schemes and bank fixed deposits (FDs).

Dividend yield – What is it and why does it matter?

Dividend yield, a key metric tracked by many income-focused investors, helps investors assess the income they can expect from holding the stock. A higher yield can signal steady income.

Long-term investors often look for stable or growing dividend yields as a sign of strong fundamentals and consistent cash generation. A dividend yield of 4% or more is generally considered good.

High dividend-paying small-cap stocks

Therefore, the small-cap stock with the highest dividend yield is PSU company MSTC. It has paid a dividend of ₹45.5 in the last 12 months, resulting in a dividend yield of 8%.

It is closely trailed by Chennai Petroleum Corporation, with a dividend yield of 7%. The company has paid a dividend of ₹55 per share in the last 12 months. Another small-cap stock with a high dividend yield of 7% is PTC Limited. PTC is another PSU small-cap stock on the list, offering ₹12.8 dividend in the past 12 months.

Catrol India and Allcargo Logistics have delivered a dividend yield of 6% during the period. They are followed by Nirlon Limited, Gujarat Pipavav Port and Indraprastha Gas Limited with a yield of 5% each, offering dividends of ₹26, ₹7.7 and ₹10.5, respectively.

Seven other small-cap stocks on the list – DB Corp, RITES, Balmer Lawrie, La Opala RG, HeidelbergCement India and Pfizer have given a dividend of 4% to investors. In absolute terms, Pfizer has paid the highest dividend of ₹200 among small-cap companies.