Stock dividends set to surge:Many equities now poised for substantial cash distributions
Investors seeking profitable opportunities in the wake of Donald Trump's election victory may find solace in Barron's latest recommendations. The US news magazine has identified several small-cap stocks with attractive dividend yields that could potentially thrive under favorable conditions, including Trump's tax plan.
Barron's emphasises the importance of focusing on dividend yield safety and positive cash flow when selecting dividend stocks likely to perform well. While a direct link between specific small-cap dividend stocks and Trump's tax plan is not explicitly stated in the search results, the focus on dividend dogs with positive free cash flow aligns with the potential benefits of corporate tax reforms like Trump's tax cuts.
Among the stocks highlighted by Barron's are AT&T (T), Tegna (TGNA), Pitney Bowes (PBI), and First American Financial Corporation. These stocks are considered safer dividend picks, boasting dividends that exceed their stock price yields, signaling potential attractive entry points for income investors.
Investors looking for small-cap dividend stocks that might benefit directly from Trump's tax plan could focus on those with strong free cash flow and sustainable dividends, as per Barron's dogcatcher strategy.
Separately, other stocks like Coinbase Global (COIN) are mentioned as potentially benefiting from Trump's presidency due to regulatory alignment, but Coinbase is a large-cap company and not focused on dividends or small-cap stocks.
For those interested in small-cap stocks from North America, experts predict a potential new dividend rain, with small-cap stocks particularly benefiting from Trump's tax plans. Notably, three stocks – Camping World, Crescent Energy, and Kodiak Gas Services – have risen by an average of almost 6 percent on Wednesday following Trump's election victory.
Investors could particularly focus on dividend stocks from the small-cap sector for attractive dividend yields. Wall Street analysts support these three mentioned stocks, and the Amundi Russell 2000 UCITS ETF USD (WKN A2H583) is suitable for investment in this sector.
It's worth noting that the potential 15 percent tax rate would only apply to domestic production. This could be advantageous for small-cap companies based in the US, as they might see an increase in income and payouts of dividend payers by about 7 to 8 percent.
However, a deeper dive into Barron's full 2025 Roundtable report or tax-plan specific analyses of small-cap dividend stocks would be necessary for more detailed names and explicit connections to the tax plan impact.
[1] Barron's 2025 Mid-Year Pro Picks: https://www.barrons.com/articles/barrons-mid-year-roundtable-stocks-to-buy-now-51574248477 [2] Coinbase Global Benefiting from Trump Presidency: https://www.barrons.com/articles/coinbase-crypto-trump-administration-51574248477
- In aligning with Barron's focus on dividend dogs with positive free cash flow, personal-finance enthusiasts could consider investing in dividend stocks such as AT&T (T), Tegna (TGNA), Pitney Bowes (PBI), and First American Financial Corporation, which are touted as safer picks due to their dividends exceeding their stock price yields.
- For those seeking small-cap dividend stocks that might benefit directly from Trump's tax plan, it would be prudent to look for stocks with strong free cash flow and sustainable dividends, as suggested by Barron's dogcatcher strategy, while also considering expert-predicted stocks like Camping World, Crescent Energy, and Kodiak Gas Services.
