Unlocking 7%+ Dividends in Small Caps with the Royce Small-Cap Trust

Small caps have lagged big caps for years, but are due for a bounce. A proven way to tap into small caps for serious dividends is through a closed-end fund called the Royce Small-Cap Trust (RVT), which has a 7.1% payout. The fund translates small cap gains into dividends, providing a hedge from global headaches and directly benefiting from the US economy's strength.

Small-cap stocks have been lagging behind their larger-cap counterparts for years, but there are signs that this trend may be reversing. A proven way to tap into the small-cap market and benefit from potential dividends is through closed-end funds. One such fund, the Royce Small-Cap Trust (RVT), offers a compelling option for investors seeking a hedge against global economic uncertainties and a direct benefit from the U.S. economy's strength.

The Royce Small-Cap Trust, listed on the New York Stock Exchange (NYSE) under the ticker symbol RVT, is the oldest and largest small-cap closed-end fund. With an average weekly trading volume of approximately 1,542,518 shares, it has a strong track record and a diversified portfolio that includes securities of small-cap and micro-cap companies. The fund's adviser, with over 50 years of experience in small- and micro-cap investments, provides a level of expertise that can be invaluable in navigating the complexities of the small-cap market Royce Small-Cap Trust (NYSE: RVT) as of Aug 31, 2025^[1].

The fund's performance has been robust, with an average annual total return of 11.28% as of August 31, 2025, based on the net asset value (NAV). This return is particularly impressive given the higher risk associated with small-cap investments. The fund's NAV as of August 31, 2025, was $17.98, while the market price (MKT) was $16.06. This indicates that the fund's shares are currently trading at a slight discount to its NAV, which can provide an opportunity for investors to purchase shares at a potentially attractive price Royce Small-Cap Trust (NYSE: RVT) as of Aug 31, 2025^[1].

One of the key attractions of the Royce Small-Cap Trust is its dividend yield. As of August 31, 2025, the fund's dividend yield was 7.1%, making it a strong option for income-oriented investors. This dividend is a direct benefit of the fund's investment strategy, which aims to generate long-term capital growth by investing at least 65% of its assets in equity securities of small- and micro-cap companies. The fund's broadly diversified portfolio includes top positions such as IES Holdings, Assured Guaranty, and Impinj, with a significant weighting in the industrials and financial sectors Royce Small-Cap Trust (NYSE: RVT) as of Aug 31, 2025^[1].

In addition to its strong performance and attractive dividend yield, the Royce Small-Cap Trust offers several other benefits. The fund's adviser has a proven track record in small- and micro-cap investments, and the fund's diversified portfolio reduces the risk associated with investing in a single small-cap company. The fund's investment strategy also provides a hedge against global economic uncertainties, as small-cap companies often benefit from the U.S. economy's strength.

In conclusion, the Royce Small-Cap Trust offers a compelling option for investors seeking to tap into the small-cap market and benefit from potential dividends. With a strong track record, an attractive dividend yield, and a diversified portfolio, the fund provides a level of expertise and risk management that can be invaluable in navigating the complexities of the small-cap market. However, as with any investment, it is important to consider the fund's investment goals, risks, fees, and expenses carefully before investing.