5 High-Yield Small Caps Offering Outsized Dividends

These lesser-known stocks are paying 6.6% to 11% yields while trading at discounted valuations.

Published on Mar. 8, 2026

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In a market dominated by large-cap stocks, these five small-cap companies are offering high dividend yields of 6.6% to 11% while trading at attractive valuations. The article highlights the potential opportunities and risks in sectors like regional banking, energy, consumer health, and HR services.

Why it matters

Small-cap stocks have been outperforming their large-cap peers, but many are still trading at discounted prices. This creates an opportunity for investors to find high-yielding dividend payers in the small-cap space, though these stocks also carry additional risks compared to blue-chip names.

The details

The article profiles five small-cap stocks with yields ranging from 6.6% to 11%: Washington Trust Bancorp (WASH), a regional bank; Diversified Energy Company (DEC) and Granite Ridge Resources (GRNT), both in the energy sector; Perrigo (PRGO), a consumer health company; and Insperity (NSP), an HR services provider. Each company has a unique business model, with some facing operational challenges but offering high dividend payouts.

  • In late 2025, the author wrote about a 'small-cap reawakening' that has continued into 2026.
  • The Federal Reserve declined to lower interest rates further in late January 2026, which could impact the momentum of small-cap stocks.

The players

Washington Trust Bancorp

A 225-year-old regional bank that pays a dividend yield over 6%.

Diversified Energy Company

A $1 billion energy company that produces natural gas, oil, and natural gas liquids, and also has midstream assets.

Granite Ridge Resources

An energy company that holds oil and gas assets in various U.S. basins, rather than operating them directly.

Perrigo

An over-the-counter health and wellness company that has struggled with stagnant sales and declining margins in recent years.

Insperity

A provider of HR and business solutions to small and medium-sized businesses, which has faced margin pressure from rising healthcare costs.

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What they’re saying

“Late in 2025, I wrote about a 'small-cap reawakening'—a bullish tailwind from retreating Federal Reserve rates that had begun to propel smaller companies forward and could continue well into 2026.”

— Brett Owens, Chief Investment Strategist (Forbes)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This article highlights a group of lesser-known small-cap stocks that are offering high dividend yields, but investors should be aware of the additional risks associated with these companies compared to large-cap blue chips.