Don’t miss these 3 small-caps with HUGE dividends

Whilst blue chip dividend shares like Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES) get a lot of attention from investors, they are not the only options out there.

Even some small-cap shares provide investors with market-beating dividends. Three that have caught my eye are listed below:

Even though the Dicker Data Ltd (ASX: DDR) share price has rallied almost 31% in the last 12 months, I don’t believe it is too late to grab a slice of the wholesale computer hardware company. Last year Dicker Data delivered net profit after tax growth of 25% to $26 million. Although growth is expected to slow this year, management expects to lift its dividend. This year the company intends to pay a fully franked 16.4 cents per share dividend, which equates to a yield of 7.6%.

So far this year the Japara Healthcare Ltd (ASX: JHC) share price has tumbled around 11%. A weaker-than-expected half-year result is behind the decline. But I think investors should look beyond this to the long-term growth potential the company has thanks to Australia’s ageing population. Japara is on track to deliver over 1,100 new greenfield places by FY 2020, which equates to an increase of almost 29% on its current places. At the current price Japara’s shares provide a trailing fully franked 5.6% dividend.

The RXP Services Ltd (ASX: RXP) share price is down almost 20% this year despite reporting a strong half-year result in February. Not only did the IT services company report a 35% increase in first-half earnings per share, but it reiterated that it is on track to deliver on the top end of its full-year revenue guidance. Because of this drop its shares are changing hands at just 10x earnings and providing a fully franked trailing 4.4% dividend.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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