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

Dividend paying small-cap stocks: Small-cap stocks are quite popular among retail investors, as the right bet can help them earn multibagger gains and mostly for the low price. 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.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.