10 min read

Portfolio shares: can small-caps be great dividend stocks?

This small-cap technology firm is exposed to structural growth trends in several sectors. I can see some company-specific risks, but this AIM stock also shows many of the dividend quality characteristics I'm looking for.
Portfolio shares: can small-caps be great dividend stocks?
Photo by Nicolas Hoizey on Unsplash

So far, I seem to have spent a fair amount of time covering the big cap stocks in my quality dividend portfolio. This week I'd like to address this imbalance by taking a look at the smallest member of the portfolio, which has a market cap of £55m.

The company in question has a very solid track record, in my opinion, but there are a couple of factors which I feel make it slightly riskier than average.

Despite this, I've been impressed by results over the last few years. Barring any nasty surprises, I think this business has the potential to be a long-term compounder for me. What's more, I think the valuation looks tempting at current levels.

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