As investors think about the potential impact of Donald Trump’s win over Kamala Harris, they shouldn’t forget about dividends, Al Root writes in this week’s edition of Barron’s. The bigger impact on dividend payers comes through Trump tax policy. He wants to cut the corporate tax rate to 15% from 21%, boosting net income margins. Tax rates might seem like a tertiary concern for income investors, but dividends are paid out of after-tax income, so the lower the taxes, the more cash can be paid out. Small-cap stocks with attractive dividend yields should be poised to outperform, the author says. Three that fit the bill, with above-average yield and support from Wall Street analysts, include retailer Camping World (CWH) and energy companies Crescent Energy (CRGY), and Kodiak Gas Services (KGS).
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Read More on CWH:
- Camping World price target lowered to $23 from $24 at JPMorgan
- Camping World Holdings (CWH) Delivered Impressive Results in Q3, Driving Shares Higher
- Camping World 14.634M share Spot Secondary priced at $20.50
- Camping World $300M Spot Secondary; price range $20.00-$21.00
- Camping World announces $300M Class A common stock offering