New Delhi, Aug. 25 -- For investors seeking steady cash flow and income generation, dividend-paying stocks have always held appeal. While large-cap companies traditionally dominate the dividend space, a recent study by Axis Securities highlighted that select small-cap companies are also emerging as attractive plays for income-focused portfolios. These firms not only offer the potential for capital appreciation but also deliver robust cash returns, with dividend yields ranging between 5 percent and 10 percent over the past 12 months.

Dividend yield, a key financial metric, is calculated by dividing the dividend paid per share by the current market price of the stock. It gives investors a clear picture of how much return they are receiving...