“America’s ticker” SPDR S&P 500 ETF (SPY) yields only 1.2% and trades for 22-times earnings. The S&P SmallCap 600, meanwhile, which nobody owns, trades for a more reasonable P/E of 16.
And select small caps even pay serious dividends. I’m talking about yields between 9.1% and 14.7%.
But are these value stocks? Or are they merely cheap for a reason? Let’s explore a group of five small caps paying big dividends.
This post originally appeared at Contrarian Outlook.