Small-cap stocks have finally started to wake up lately, which could be a bullish sign as we head into 2026. Let’s remember that a smaller market capitalization does not necessarily mean a diminutive dividend—today we’ll discuss four small caps that yield between 7.1% and 13.3%.
It’s been a “lost decade” for small caps, which have lagged their larger brethren. 2020’s COVID reopening rally in small caps was intense but short-lived—rising interest rates, renewed interest in safer mega-cap stocks after two bear markets in three years, and a rush into predominantly large-cap AI stocks have left small caps on the outs going into this year.
But when Wall Street turned its attention to the Fed’s rate cuts, investors began to swoop up these unloved small cap stocks.
This post originally appeared at Contrarian Outlook.