When it comes to small-cap income stocks, Northgate (LSE:NTG) looks to me to be one of the market's best opportunities. Shares in the vehicle rental company currently support a dividend yield of 5.2%, and the payout is covered more than twice by earnings per share. However, despite the attractiveness of this dividend, it appears that the market is cautious about the outlook for Northgate as shares trade at a downbeat forward P/E of 8.1.
Spreads and stocks broker IG Group Holdings (LSE:IGG) has been a losing trade lately, its share price trading 18% lower than a year ago. This morning's update has done little to change that, with the share price creeping up just 0.92% time of writing. However, management remains confident of a bright future, and things might soon start turning back in its direction.