Find High Dividend Yields Among Small-Cap Stocks: Diebold Incorporated (DBD), DineEquity Inc (DIN)

DineEquity Inc (NYSE:DIN) is a relatively new dividend payer, having only recently reinstated its dividend program. Earlier this year, the company announced an annualized dividend of $3 per share, as well as authorized a $100 million share repurchasing plan.

DineEquity Inc (NYSE:DIN) has undergone a large restructuring of its business. Since the company acquired Applebee’s, it started its goal of converting 99% of its restaurants to the franchise model. Last year, the company completed this goal, but the company’s fiscal 2012 results bear its effects. Adjusted earnings per diluted share fell 9% for the quarter and were flat in 2012 year over year. However, management is confident in the post-transition future of the company. 2013 same-restaurant sales are expected to come in at 1.5% growth at the top of the forecasted range.

The Foolish takeaway

Small-cap stocks have more growth potential than large-caps, and as a result, may have more room to run than their large-cap peers. If you’re an investor who favors receiving income from your stocks, these three companies should be on your watch list. Each of these stocks pays a compelling dividend that exceeds the yield on the S&P 500.

In addition, these stocks aren’t over-priced and present interesting value opportunities. Small-cap stocks frequently trade for excessive valuations as compared to the broader market. Fortunately, these stocks trade for modest valuations and could provide investors with the unbeatable combination of both dividends and capital gains for years to come.

The article Find High Dividend Yields Among Small-Cap Stocks originally appeared on Fool.com and is written by Robert Ciura.

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