A Final Note
Personally, I think chasing yield in small caps is a misplaced endeavor. If you want yield, go for yield and stability in investment-grade bonds or blue chips. If you want capital gains, pick a company that invests extra capital in itself and finds big growth that way.
A marriage of the two strategies is like mixing a cheeseburger with chocolate cake — the two things work great independently, but poorly together.
But hey, if you’re making money with this strategy, then who am I to argue?
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he owned a long position in Apple but none of the other stocks named here.