Investors looking for both a bargain and income can find them in small-cap stocks, but they should be selective, according to Bank of America. Dividends are more prevalent than buybacks in the cohort, with some 40% of the Russell 2000 paying a dividend today, the firm said in a note Tuesday. While small caps face greater risk from tariffs and macro uncertainty, as well as from higher rates, they remain cheap compared with large-cap stocks, equity and quant strategist Jill Carey Hall wrote. The Russell 2000 was the first to enter bear market territory after President Donald Trump 's sweeping tariff policy was announced in April. A bear market is a 20% or more decline from a previous high. While the index has reversed course, it is still about 15% off its high and down more than 5% year to d

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