A Mix of Growth and Income With 3 Micro Cap Dividend Stocks

When you are looking for some leveraged gains without turning to derivatives or ETFs that use derivatives, including a few micro-cap stocks in your portfolio can often deliver the extra oomph you are seeking. But caution is warranted, as if you don't manage these little rockets when the market turns, you also might find yourself heading for cover when they fall just as fast. As an example, one micro-cap simulation that I ran on my fundamental back-testing software showed an annualized return of 25% over the past 5 years. However, if you look to the maximum draw-down of 52.93% during the 2008 / 2009 market crash, you quickly realize that you are definitely adding on risk for your reward. As well, only little better than half of the stocks were converted into profitable trades. This means that you have to be judicious and rid yourself of lackluster performers.Below is... Read more