Investors' indiscriminate flight from smaller cap financial stocks over the past several months has unduly punished the share price of several companies still doing a brisk business, including Home Capital Group Inc. (HMCBF.PK).

As one of the handful of non-bank alternative mortgage lenders still standing in Canada in the wake of the U.S. subprime meltdown, Home's bottom line has benefited from reduced competition in a Canadian market where 20% of home loans are still made through alternative lenders, even as overall demand for homes in several markets falls.

The TSX Completion Index, those names not include in the large-cap TSX 60, may not come to mind at first when investors are looking for dividends, but there are a handful of them that have very solid track records of dividend growth since 1995. UBS strategist George Vasic highlights four financials and eight consumer/industrial stocks that make his list of dividend growers. And there are four other financials on their way.

“These mid and small cap selections can be an attractive alternative to those from the TSX 60,” he told clients. “The reason investors need to pay attention to the dividend growers outside the TSX 60 is that they have uniformly outperformed their large cap peers within the 60.”