13 Micro-Cap Dividend Stocks With Quick Paybacks
There is a common misconception among investors that small companies do not pay dividends. This common notion assumes large caps are mature companies flush with cash and that companies with smaller market capitalizations are cash-strapped startups. This is simply not true: research in a previous article found surprisingly few large caps have payback periods inside of two decades. Research featured in this article discovered more micro cap stocks with payback periods under 20 years.
Micro Cap Stock Payback Period Calculations
The number of years it takes for an investment to pay you back is called the payback period. It is a simple and crude measure of risk. Other investment metrics like required return do not always match up to the calculated payback period. This is because required return takes into account how dividend distributions in earlier years are worth more than the same dollar value paid out in the future.... Read more