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5 exciting small-cap shares to watch in 2017

One of the things I love about the Australian share market is the large number of high quality small-cap shares to invest in.

But with so many to choose from, it can be difficult to decide which of them to invest your hard-earned money into.

In an attempt to narrow things down, I have picked out five small-cap shares which I think could be set for big things in 2017. Here they are:

ChimpChange Ltd (ASX: CCA)

This fast-growing US-based digital banking company has seen its share price rally a massive 46% this year. It’s not hard to see why considering the company’s impressive growth in user numbers and total transaction volumes. With a host of innovative revenue-generating features on the way, I’m confident this growth will continue for some time to come.

Capilano Honey Ltd (ASX: CZZ)

I think this leading honey producer is a great option for patient buy and hold investors. Thanks to its Beeotic prebiotic product range and strong demand from the China market, I believe the company is in a great position to grow earnings at an above-average rate in the long-term.

LiveHire Ltd (ASX: LVH)

This talent technology company’s software platform creates pools of pre-qualified job candidates that can be accessed when a company needs to recruit, saving it both time and money. With a healthy cash balance of $18 million and its platform integrated into the world’s largest job site Indeed, LiveHire is certainly one to watch in my opinion.

Kidman Resources Ltd (ASX: KDR)

Investors looking for exposure to the resources sector, might want to consider this lithium miner. Its shares have fallen sharply this year, leaving them at an attractive level in my opinion. Kidman’s world-class Earl Grey lithium deposit could prove to be an incredibly valuable asset should lithium prices continue to remain high. It is a high risk investment, though.

National Veterinary Care Ltd (ASX: NVL)

With the RSPCA estimating that pet ownership in Australia has grown to a massive 63% of Australian households, I believe demand for veterinary services is likely to grow strongly in the future. As well as this organic growth, the company has significant inorganic growth opportunities through acquisitions.

Finally, a portfolio full of just small-caps is extremely risky. So I would suggest investors balance it out with an investment in one of these high-flying blue-chip shares.

A Big, Fat, Fully Franked Dividend

This company's dividend is almost the stuff of legends. Since it started paying dividends in 2007, it has increased its payout to shareholders every single year, a run that includes 21 consecutive dividend increases.

Based on the last 12-months of dividends, its shares are currently offering a fully-franked 4.8% yield, which grosses up to almost 7% when those franking credits are included. And in stark contrast to the likes of Commonwealth Bank and Telstra, this company just increased its dividend by over 13%, and guided for 2017 profits to grow by 20%!

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Capilano Honey Limited. 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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