In the current market climate, investors are increasingly shifting to defensive strategies. As investors navigate the turbulent waters of tariff-driven volatility in 2025, dividend stocks have emerged as a safe harbor, delivering superior returns compared to the broader market. While the default strategy might be to anchor portfolios with blue-chip payers like Coca-Cola (NYSE: KO) and Johnson & Johnson (NYSE: JNJ), smart money might also look to small-cap stocks. These smaller companies, typically with market caps under $2 billion, often possess untapped potential and the capacity for substantial upside due to their lower starting valuations.
Our research has uncovered three intriguing small-cap dividend stocks, all trading below $50 per share, that appear poised for potential future appreciation. It’s true that small-cap investments come with elevated risk, but the potential rewards can be equally substantial.
This post originally appeared at 24/7 Wall St.