The Best Small-Cap Dividend Growers: Capital Market Stocks
Published Nov 13, 2014 on Seeking Alpha

OverviewI previously concluded a series of articles that identified what I consider to be the best long-term income stocks (based on dividend growth and yield) for investors by comparing S&P 500 stocks within the same industry sector. In this series of articles, I will be following the same process for small-cap stocks within the S&P 600.For Part 8, I will be taking a look at Capital Market stocks within the Financial sector. These stocks include:Evercore Partners (NYSE: EVR)Interactive Brokers Group (Nasdaq: IBKR)Investment Technology Group (NYSE: ITG)MarketAxess Holdings (Nasdaq: MKTX)Stifel Financial (NYSE: SF)SWS Group (NYSE: SWS)Out of these stocks, the following do not currently pay a dividend: Investment Technology Group, Stifel Financial, and SWS Group.When ranking the remaining two stocks by dividend yield, the order is as follows:Evercore Partners - 2.18%Interactive Brokers Group - 1.48%MarketAxess Holdings - 0.97%When ranking the stocks by dividend growth over the past five years, the order is as follows:MarketAxess Holdings - 128.60%Evercore Partners - 86.67%Interactive Brokers Group - (94.40%)Because Interactive Brokers Group has seen a decline in revenue growth over the past five years, and flat dividends over the past several years, I do not consider it a suitable investment for dividend growth investors. Because of this I will only focus on Evercore Partners and MarketAxess Holdings for the remainder of this article.For these two stocks, revenue growth has been... Read more