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Why do ASX Small Cap stocks dividends matter?
Back in 2008 our ASX Small Cap stock fund manager The Idle Speculator was buying ASX Small Cap stock TPG for below 60 cents! At the end of this month the merger should be completed between TPG and Vodafone Hutchison, part of which involves shareholders receiving a special dividend, slated to be 49-52 cents.
What ASX investors are receiving now is a dividend that’s close to the entire value of the The Idle Speculator's initial investment.
It's our experience in Small Cap stocks like TPG that gave us the confidence to start Under the Radar Report.
Only with ASX Small Cap stocks is this possible and it’s one of the key reasons ASX Small Cap stocks need to be a part of any ASX investors portfolio.
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Access the best ASX Small Caps paying dividends.
Why do ASX Small Cap stocks dividends really matter?
Dividends reflect cash flow. If you have cash flow then you have a real business. If you can grow cash flow then you can grow dividends for investors.
This is what ASX Small Cap stock TPG did. Originally set up by David Teoh and his wife in 1986, it was called Total Peripherals Group and it imported memory chips and PCs.
By 2008 it had merged with SP Telemedia, giving it critical mass to be a national player. Its strategy was to be the low-cost provider in broadband and ISP, enabling it to gain market share.
Now if you own TPG you own shares part of the third biggest telco in Australia covering internet/fixed line and mobile.
It has built this business by being the lowest cost operator, but back in 2008 how many people had heard of TGP? We had and that is what Under the Radar Report is all about: Providing our ASX investor subscribers with research on ASX Small Cap Stocks that fly under the radar and offer significant returns.
What other ASX Small Cap stock winners has Under the Radar Report had?
Our next issue is 400 and we reflect on the big lessons learned, which includes our big winners. Our top 12 performed ASX Small Cap stocks have returned over 9-fold on the initial investment.
We look at what attracted us to these ASX Small Cap stocks; both from an idea perspective and from the fundamentals; we look at what happened. Yes, one of the attractions was often dividends.
Sirtex (SRX) and Medical Developments (MVP) were both small biotechs, but they were paying dividends. That immediately sets them apart.
Similarly, Northern Star Resources (NST) and Evolution Mining (ENV) were small gold miners and yes, they were paying dividends.
More important, however, was that we were impressed with management’s vision and by each ASX Small Cap stock's underappreciated fundamentals. And yes, this included the fact that they were paying dividends.
What about reducing risk with ASX Small Cap stocks?
In our next issue, Under the Radar Report talk about recession proofing your portfolio. We can all see the disconnect relating to the pain we’re seeing in the real economy via unemployment versus the FOMO we’re seeing in the markets.
We are going to see continued volatility due to this disconnect. We help subscribers prepare for the inevitable disappointments that happen when market expectations are not met.
Investing is all about appreciating the risk/return trade-off. This is where Under the Radar Report can help you so that you can sleep at night, knowing that your money is working for you.