As Small Caps Rally, These 3 Finance High-Yielders Could Have Further Upside – WisdomTree U.S. SmallCap Dividend Fund (ARCA:DES), Hanmi Financial (NASDAQ:HAFC)

In the past month with the Russell 2000 index up roughly 7%, as compared to the S&P 500 index up nearly 4.8%, it is evident that small cap stocks are leading the charge in this bear market rally. The WisdomTree U.S. SmallCap Dividend Fund DES has seen a nice rally in the past month surging by more than 9%.

Small cap dividend stocks are an interesting investment, since sharing their distributions with shareholders is less common during the younger stages of a firm. When a small cap does offer dividends, it can be a positive sign the firm is profitable and fundamentally sound.

Another important factor when investing in small cap stocks is they tend to be more volatile than the market. If the economy is truly in a bear market rally, investing in a small cap to reap the volatile returns, as well as earning a high yield, could be a great strategy.

Also Read: Looking For A Short Squeeze Candidate: 2 Small Caps With Soaring Yields And Are Heavily Shorted

Learn more about three small cap stocks in the financial industry with high yields.

Hercules Capital Inc HTGC is offering a dividend yield of 10.21% or $1.44 per share annually, making quarterly payments, with a consistent track record of increasing its dividends for three consecutive years.

Hercules is the largest business development company engaged in providing senior secured loans to high-growth, venture capital-backed companies in various technology, life sciences and sustainable and renewable technology industries.