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Most people rarely associate dividends with microcap stocks. However, many of the top performing microcaps discussed here have returned substantial dividends to shareholders. So where do we find the next Patriot Scientific (OTCQB:PTSC) or Highway Holdings (NASDAQ:HIHO)?

I'm not aware of any resource that focuses on dividend-paying microcaps (or even smallcaps). But with just a little work, we can track them down. I use these two tools:

1. MSN Money Deluxe Stock Screener
: screening for stocks with a market capitalization of less than $250,000,000 and current dividend yield of >= 2 will bring a good list to start with. I usually set the screener to return the top 100 matches, and sift through those.msn screen

2. Yahoo! News Search: searching for "dividends & .ob" will bring up recent dividend announcements for otc bb stocks that might not show up in the screen (for example, if they have just recently announced a dividend). Here's the same thing for the pinkies. (I don't have a good search to capture dividend news for the microcaps trading on the Nasdaq, AMEX or NYSE. Do you?)

Using those two resources, here is a list I generated of non-financial microcaps paying a dividend yield of 2% or more. It took less than a half hour to compile, including the time to register for the MSN screener:

smallcap dividend stocks

DISCLOSURE: I have no position in any of the stocks mentioned.