Micro-cap stocks are publicly-traded companies with market capitalizations between $50 million and $300 million. These represent the smallest companies in the stock market.

The total number of micro-cap stocks varies depending upon market conditions. Right now there are hundreds of micro-cap stocks, so there are plenty for investors to choose from.

As the smallest stocks, micro-caps could have stronger growth potential over the long run than large-cap stocks or mega-cap stocks.

Micro cap stocks tend to have higher risks, which investors should carefully consider before purchasing any stock. Still, the following 3 micro cap stocks have high dividend yields.

Hooker Furnishings (HOFT)

Hooker Furnishings is a designer, marketer and importer of casegoods (wooden and metal furniture), leather furniture, fabric-upholstered furniture, lighting, accessories and home décor for residential, hospitality and contract markets. 

The company also domestically manufactures premium residential custom leather and fabric-upholstered furniture. Hooker Furnishings is the largest supplier of casegoods and upholstery in the U.S. and has access to more than 75% of all retail furniture distribution. It was founded in 1924, it is headquartered in Martinsville, Virginia, and currently trades with a market capitalization of $95 million. 

In mid-April, Hooker Furnishings reported (4/17/25) financial results for the fourth quarter of fiscal 2025 (the fiscal year of the company ends at the end of January 2025). Net sales grew 8% over the prior year’s quarter, mostly thanks to a low comparison base. The combination of high interest rates and high home prices have been exerting pressure on the business of Home Furnishings over the last two years.

Fortunately, the future looks brighter than the last few years for Hooker Furnishings. Inflation has moderated and the Fed is likely to reduce interest rates in the upcoming years. If this proves correct, demand for new houses is likely to strengthen. As a result, Hooker Furnishings is likely to enjoy a recovery of its sales and its earnings in the upcoming years.

HOFT stock yields 10%.

Oak Valley Bancorp (OVLY)

Oak Valley Bancorp is a regional banking holding company based in Oakdale, California, operating through its subsidiary, Oak Valley Community Bank. It provides a range of financial services including commercial and consumer loans, deposit accounts, and investment services. Recently, Oak Valley Bancorp has been active in expanding its market presence; it completed the acquisition of Sonora Bank in early 2024, enhancing its footprint in the Central Valley region and broadening its customer base. The company generated $70.0 million in net interest income last year. 

On April 11th, 2025, Oak Valley posted its Q1 results for the period ending March 31st, 2025. For the period, net interest income came in at $17.8 million, compared to $17.8 million in the previous quarter and $17.2 million last year. The slight quarter-over-quarter decline was attributed to a December 2024 FOMC rate cut and two fewer days of interest accrual. 

The year-over-year increase was driven by higher average gross loan balances and an improvement in loan yields, while a decrease in the average cost of funds to 0.79% in Q1-2025 from 0.86% in Q4-2024 also helped bolster net interest income. The net interest margin for the quarter was 4.09%, which was up from 4.00% in Q4-2024 and flat compared to Q1-2024. For the quarter, EPS was $0.64, down nine cents compared to last year.

Over the past decade, Oak Valley Bancorp has demonstrated rather impressive growth, reflected in its 19.5% CAGR in EPS. Key milestones that have contributed to its growth include several acquisitions and other expansion efforts. For instance, in 2014, the acquisition of FNB Bancorp notably expanded its presence into Modesto, enhancing its branch network and customer base. This move was followed by the 2017 acquisition of National Bank of the Redwoods, which enabled Oak Valley to enter the North Bay market and diversify its geographic footprint. Also, by opening new branches in 2021, such as those in Turlock and Tracy, Oak Valley has tapped into emerging markets and strengthened its footprint. 

Besides acquisitions, the company has focused on growing organically as well. For instance, in 2018, Oak Valley invested in upgrading its loan origination systems, which improved the efficiency of its lending processes and contributed to a steady increase in loan volumes. This investment seems to have paid off as net interest income has grown consistently.

OVLY yields 2.4%.

Nacco Industries (NC)

NACCO Industries is a holding company for The North American Coal Corporation, which incorporated in 1913. The company supplies coal from surface mines to power generation companies. NACCO Industries is the largest lignite coal producer in the U.S. and ranks among the top ten of all coal producers. 

NACCO Industries operates in the states of North Dakota, Texas, Mississippi, Louisiana and on the Navajo Nation in New Mexico. The company produces annual revenues of ~$240 million. The company has been very active in purchasing and spinning off a wide variety of businesses in its history. In 1988 and 1990, NACCO Industries made several purchases that expanded the business to include housewares. In 2012, NACCO Industries spun off its Materials Handling Group (a combination of Yale Materials Handling Corporation and the Hyster Company). The company spun off its housewares-related business on September 29th, 2017. 

On March 5th, 2025, NACCO Industries announced fourth quarter and full year results for the period ending December 31st, 2024. For the quarter, revenue grew 24.1% to $70.4 million while earnings-per-share of $1.02 compared very favorably to -$5.88 in the prior year. 

For the year, revenue grew 10.7% to $238 million while earnings-per-share of $4.55 compared to -$5.29 in 2023. Coal revenue grew 8.81% to $20.4 million while total tons delivered improved 10.9%. Unconsolidated coal deliveries grew 14.9% to 5.6 million tons while consolidated coal deliveries declined 16.9% to 570K tons.

NACCO Industries has raised its dividend for 39 consecutive years. NC currently yields 2.6%.