Some Small Cap Stocks I Like

I came across a couple of small cap stocks in the past week that I've decided to add to my investment portfolio. The numbers look good on both, each company currently pays dividends, while retaining a portion of earnings for growth. If you're interested in checking them out for yourself, they are:

1. Deswell Industries Inc. (DSWL) I've purchased stock in this company already. It is a consumer goods company with a variety of products. They had a recent price of $6.55 per share which is well below their 52 week high of $13.04. Their dividend yield of 6.10% and the fact that they have $1.55 per share in cash was very attractive to me. Since their payout ratio is only 82% they are retaining earnings for future growth and should be able to maintain current dividend payouts.

2. American Equity Investment Life Holding Company (AEL) I've written before about how much I like insurance companies and this is one I plan on taking a position in, in the near future. Their dividend payout is only .70%, but with a payout ration of 5.00%, they are retaining a lot of earnings for growth and possibly for increasing dividends. Their recent price of $8.70 per share is well below their 52 week high of $14.07 and they are selling below their book value of $10.88 per share.

With both of these stocks I believe a lot of the risk has been removed from investing by their reduced price per share. I present these as examples of what I am currently investing in, as always, I would strongly recommend that you do your own research before you invest.