economy

February 5, 2026

Small caps are beating the S&P 500 in 2026. These stocks pay a dividend and are liked on the Street

For investors willing to take the risk, the Russell 2000 has several members that pay income, offer potential appreciation and are recommended by analysts.

Small caps are beating the S&P 500 in 2026. These stocks pay a dividend and are liked on the Street

TL;DR

  • Small-cap stocks (Russell 2000) have outperformed the S&P 500 in 2026.
  • Small caps are more sensitive to economic conditions and interest rates than larger companies.
  • Companies that borrow money face increased financing costs when interest rates rise.
  • High dividend payout ratios in small caps can lead to dividend cuts during difficult times.
  • Spectrum Brands, a consumer products company, has seen share price increase and offers a dividend yield of 2.5%.
  • Concentra Group, an occupational health services provider, has also seen share price increase and offers a dividend yield of approximately 1.1%.
  • Other screened stocks include WD-40, Upbound Group, Select Water Solutions, and U.S. Physical Therapy.

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