Growth Investing in Dividend Stocks
Investors interested in growth investing with dividend growth stocks tend to limit their focus to the high-quality, large cap names. Yet there are also some great small cap dividend plays for growth investors that are high-yield alternatives to the traditional large caps.
There are a group of high-yield, high-growth small caps that offer above-average yields and above-average estimated future earnings growth. Thanks to valuations that are reasonable and even low relative to their expected growth, each of these stocks has the potential to offer high future total returns. One of these stocks is Compass Diversified Holdings (CODI), which is a trust that acquires controlling interest in and actively manages businesses. The company's board of directors intends to declare and pay regular quarterly cash dividends with a current annual yield of 9.3%.