SMALL CAPS WITH BIG YIELDS

摘要

Ignore the chorus of speculative punditry in search of Trump-friendly investments. It's better to simply listen to what the market has been saying-or, rather, shouting. Mr. Market loves small- and midcap stocks. The Russell 2000 Index has gained 11% since the election, and the S&P 400 MidCap Index is up 8%. Year-to-date, both indexes have returned more than 16%. Given Trump's antiglobal-ization leanings, the idea is that many domestically focused companies will fare better than large multinationals, especially if they have the ability to overcome or even profit from a rise in interest rates and inflation. Even without the effects of Trumponom-ics, small-caps are a great place to park your money. According to Morning-star's SBBI Yearbook, $1 invested in small stocks at the end of 1925 would have grown to $26,433 by the end of 2015, versus $5,390 for large stocks. Below is a selection of small- and mid-cap stocks with good fundamentals and ample dividend yields. Thus, investors benefit from steady cash payouts while they wait for capital gains.