Market dominance protects your dividends

Article Excerpt

Dividend-seeking investors tend to shy away from small-cap stocks as they feel their payments are less secure than large cap firms. However, these two small caps dominate their niche markets, which offsets your risk. CALIAN GROUP LTD. $55 is a buy. The company (Toronto symbol CGY; High-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 11.8 million; Market cap: $649.0 million; Dividend yield: 2.0%; Dividend Sustainability Rating: Above Average; www.calian.com) provides business services to the healthcare, defence, security, aerospace, engineering, agriculture and technology industries. Calian pays a quarterly dividend of $0.28 a share; the annual rate of $1.12 yields 2.0%. That payment went up five times between 2010 and 2012. It has been steady for investors since then. The company has completed a transaction with MDA Ltd (Toronto symbol MDA) to purchase assets associated with MDA’s nuclear services. Calian Nuclear has been serving the Canadian and international markets for over 25 years. The addition of MDA’s nuclear team to Calian should be a good fit, including the…