Top 10 Small and Mid-Cap Dividend Growth and Quality Free Cash Flow Stocks

Investing.com - Wolfe Research has identified ten small- and mid-cap companies that have performed well over the past twelve months in dividend growth and strong unleveraged free cash flow yields, covering sectors from consumer staples to industrials.

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This research focuses on companies that generate substantial cash flow while increasing dividend payments, a dual trait often indicative of financial strength in small- and mid-cap sectors. These stocks represent investment opportunities across different industries, providing exposure to various economic sectors.

1. Playtika Holding Corp. (NASDAQ:PLTK) - This communications services company ranks first, combining strong free cash flow generation with dividend growth momentum.

Playtika Holding Corp. reported Q4 earnings per share below expectations, despite revenue slightly exceeding estimates. The company also received a downgrade from Wedbush to Neutral due to concerns over debt maturities.

2. Upbound Group, Inc. (NASDAQ:UPBD) - This non-essential consumer goods stock ranks second, demonstrating strong cash flow metrics while expanding dividend payments.

Upbound Group, Inc. announced robust Q4 financial results, with EPS and revenue surpassing analyst expectations.

3. Dole plc (NYSE:DOLE) - This consumer staples company ranks third, combining dividend growth with free cash flow yield.

Recently, Dole plc announced Q4 earnings, meeting EPS expectations and exceeding revenue estimates.

4. Spectrum Brands Holdings, Inc. (NYSE:SPB) - Another consumer staples company, Spectrum Brands ranks fourth with its cash generation ability and dividend characteristics.

Spectrum Brands Holdings, Inc. reported strong Q1 results, with EPS and revenue significantly beating analyst estimates. Following the earnings release, Canaccord Genuity and Oppenheimer raised their target prices on the stock.

5. Teekay Tankers Ltd. (NYSE:TNK) - Representing the energy sector, ranking fifth, with strong performance in dividend growth and unleveraged free cash flow yield.

Teekay Tankers Ltd. posted strong Q4 results, with EPS and revenue well above expectations.

6. World Kinect Corp. (NYSE:WKC) - The second energy company on the list, ranking sixth, showing steady performance on key evaluation metrics.

World Kinect Corp. recently announced an increase in its Chief Accounting Officer’s compensation and updated its executive departure policy.

7. Perrigo Company plc (NYSE:PRGO) - This healthcare stock ranks seventh, balancing dividend growth with free cash flow generation.

Perrigo Company plc reported Q4 EPS slightly below expectations, while revenue exceeded estimates. Additionally, Jefferies maintained a Hold rating on the stock.

8. DENTSPLY SIRONA Inc. (NASDAQ:XRAY) - This dental products and technology company ranks eighth among healthcare representatives on the list.

DENTSPLY SIRONA reported mixed Q4 results, with revenue beating expectations but EPS falling short. Mizuho subsequently raised its target price on the stock while maintaining a Neutral rating.

9. Hub Group Inc. (NASDAQ:HUBG) - Representing the industrial sector, ranking ninth, with a combination of cash flow yield and dividend expansion.

Hub Group Inc. announced a delay in filing its annual report to complete performance reviews after discovering an accounting error that underestimated costs. Following the news, the company received downgrades from multiple firms including Baird and Stifel.

10. Costamare Inc. (NYSE:CMRE) - Rounding out the list, this industrial company represents the diversified sectors identified by Wolfe Research.

Costamare Inc. reported Q4 earnings below analyst estimates, despite revenue surpassing expectations during the period.

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