Dividend-paying companies such as Headlam Group and Restaurant Group can diversify your portfolio cash flow by paying constant and large dividends. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Here are other similar dividend stocks that could be valuable additions to your current holdings.

Headlam Group plc (LSE:HEAD)

Headlam Group plc, through its subsidiaries, sells, markets, supplies, and distributes floorcovering and other ancillary products. Started in 1992, and currently run by Stephen Wilson, the company size now stands at 2,384 people and with the company’s market cap sitting at GBP £449.28M, it falls under the small-cap group.

HEAD has a juicy dividend yield of 5.91% and distributes 60.60% of its earnings to shareholders as dividends . Although investors would have seen a few years of reduced payments, it has so far always picked up again, with dividends increasing from UK£0.21 to UK£0.31 over the past 10 years. More on Headlam Group here.

The Restaurant Group plc (LSE:RTN)

The Restaurant Group plc operates restaurants and pub restaurants in the United Kingdom. Established in 1954, and now run by Andy McCue, the company size now stands at 15,700 people and has a market cap of GBP £461.67M, putting it in the small-cap category.

RTN has a enticing dividend yield of 7.55% and is distributing -211.18% of earnings as dividends , with analysts expecting this ratio to be 71.30% in the next three years. In the case of RTN, they have increased their dividend per share from UK£0.072 to UK£0.17 so in the past 10 years. The company has been a dependable payer too, not missing a payment in this 10 year period. RTN boasted a strong return on shareholders funds (ROE) in the last year, surpassing the GB Hospitality industry average of 10.46%. Dig deeper into Restaurant Group here.

RPS Group plc (LSE:RPS)

RPS Group Plc, a consultancy company, provides advice on the evaluation and development of energy, water, and other resources; and development and management of the built and natural environment. Founded in 1987, and now run by John Douglas, the company size now stands at 5,099 people and with the stock’s market cap sitting at GBP £503.58M, it comes under the small-cap group.

RPS has a substantial dividend yield of 4.22% and distributes -97.61% of its earnings to shareholders as dividends , with the expected payout in three years being 50.68%. In the last 10 years, shareholders would have been happy to see the company increase its dividend from UK£0.032 to UK£0.097. They have been dependable too, not missing a single payment in this time. The company’s level of debt of 26.02% compared to it’s net worth is satisfactory (less than 40%), which indicates on the surface that the company is in a healthy position. More detail on RPS Group here.