If you're in the stock market for big dividends and better growth prospects than stocks in S&P/ASX 200 (ASX: XJO) (INDEX: ^AXJO) you should seriously consider buying these three small-cap stocks.
1. Cash Converters International Ltd (ASX: CCV) is more than a rapidly expanding second-hand goods dealer. If you want a small loan or a complete car finance package (including the loan, maintenance, insurance and roadside assistance) Cash Converters is your one stop shop. What's more, with improved technology, all the necessary applications can be done online. With a juicy fully franked 3.4% dividend Cashies is a compelling long-term buy and hold at its current price. I'm so confident in its growth prospects, it makes up over 10% of my personal portfolio.
2. Money3 Corporation Limited (ASX: MNY) jumped nearly 7% today on the release of an updated profit guidance. Managing Director Rob Bryant said normalised profit is expected to reach $10 million (before tax), up from $5.2 million in 2013. As you can imagine I'm kicking myself for missing this one but I think there could be more good times to come. Like Cash Converters, Money3 does small loans through an extensive branch network and complements it with an online offering. It pays a 4.2% dividend fully franked.
3. FSA Group Limited (ASX: FSA) was one of the biggest movers in 2013 climbing 178%. FSA profits from helping individuals and businesses with short-term financing but in a more personalised manner than most others in the industry. You could probably remember seeing Fox Symes & Associates on television. Its business is divided into three operating segments, namely Services (for those who wish to enter into payment arrangements with creditors), Home Loans (for consolidating debt) and Small Business (helping with cash flow management). In 2013 all divisions boosted profits and, despite recently increasing FY14 profit after tax guidance to between 18% and 25% higher than FY13, management believe the best earnings will come in the future when interest rates rise. It is forecast to pay a 4.1% dividend.
Here's another huge growth stock…
