Investing in high-yielding shares remains an attractive option for income-seeking investors, especially when you consider interest rates could remain at these historically low levels for sometime to come.
Fortunately, there are a number of small-cap shares that investors can consider right now, including:
Villa World Ltd (ASX: VLW)
Villa World has been a consistent performer over the past few years and only recently upgraded its FY17 guidance on the back of a stronger-than-expected first-half result. While there remains some risks in certain parts of the Australian housing market, the home-building company is taking steps to mitigate these risks by expanding its operations across a number of different states. The Villa World share price has performed strongly over the past 12 months, yet the company still trades on an attractive price-to-earnings ratio (PER) of 7.5 and offers a massive dividend yield of 7.4%.
RCG Corporation Ltd (ASX: RCG)
Unlike Villa World, RCG underwhelmed investors with its first-half result and second-half trading update that resulted in a full-year profit downgrade. Despite the weaker-than-expected update, the athletic clothing and footwear company is still growing at a rapid pace and remains on track to deliver a big uptick in full year profits. Investors who believe the shares have finally hit a bottom should see the current share price as an attractive entry point considering they now offer a fully franked dividend yield of around 5.4%.
Lifehealthcare Group Ltd (ASX: LHC)
Lifehealthcare is a small-cap healthcare company that specialises in the distribution of specialist surgical equipment across Australia and New Zealand. The company's first-half profit result was negatively impacted by the weaker Australian dollar, but its underlying business operations continue to track along nicely. After a decent pull-back, the shares currently trade on a PER of 11 and offer a dividend yield of more than 6%.
