Three small-cap stocks with big payouts

Small-cap stocks are beginning to offer investors higher income. Fund manager Scott McKenzie tips three such London-listed stocks to buy now.

Each week, a professional investor tells MoneyWeek where he'd put his money now.This week:Scott McKenzie, fund manager, Saracen UK Income fund.

For much of my career managing equity income funds, the majority of small-cap stockshave had little interest in paying out significant dividends. Most have focused on reinvesting and growing their businesses instead.

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Scott McKenzie is fund manager of the Saracen UK Income fund.