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The S&P SmallCap 600 Index covers approximately 3% of the domestic equities market.The constituents of this index are selected based on market capitalization and other criteria to ensure they are investable and financially viable. Since the small cap universe is made of up of stocks that are known for poor trading liquidity and financial instability, the S&P 600 components are much better than others.

In terms of performance, the S&P 600 is up 8.9% YTD. The average constituent market cap is $0.73 B.Consumer discretionary, consumer staples, information technology, health care and industrials form the top five sectors in this index.

The following S&P Small 600 stocks pay more than 5% dividend as of May 6, 2010:

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For investors that prefer an ETF for investing in small caps, the iShares S&P SmallCap 600 Index (IJR) is one option.

Source: 18 S&P 600 Small Caps Paying +5% Dividends