Micro Cap Dividends: Waiting For Payback

There is a common misconception among investors that small companies do not pay dividends. This notion assumes large caps are mature companies flush with cash, and that companies with tiny market capitalizations are cash-strapped start-ups. This is simply not true -- research featured in this article discovered 27 micro cap stocks with payback periods under 20 years, more than the 19 large caps that have payback periods inside of two decades. Micro Cap Stock Payback Period Calculations The number of years it takes for an investment to pay you back is called the payback period. Since many dividend investors are attracted to high-paying dividend companies on the premise that they can ignore what the markets do and simply focus on their dividend income, the payback period provides a reality-check for how long payback could take based on dividend payments. Payback period estimates depend on earnings growth and dividend payout ratios.... Read more