Far more money has been made selling newsletters about micro-cap stocks than owning them. The majority of these investments are illiquid, over-the-counter offerings with next to no trading volume.

National Stock Yards Company, for example, has an average trading volume of 26 shares per day. Getting into or out of this stock would be extremely difficult.

Which leads to today's business: a micro-cap stock that's relatively inexpensive, consistently grows its dividend, and trades on a major exchange with thousands of shares changing hands each day. Right off the bat, I'll mention that this isn't a company I would personally invest in, but I do want to highlight it for anyone currently experiencing the "micro-cap itch" and looking to buy shares of a small regional business.

Today's company is Flanigan's Enterprises, Inc. ($BDL).

This regional micro-cap owns 32 restaurants and liquor stores across South Florida.

The company owns the Flanigan's restaurant chain, as well as Big Daddy's lounges and liquor stores. Flanigan's has been in business since 1959, and the company has achieved a surprisingly strong five-year compound annual dividend growth rate.

Looking at the numbers, Flanigan's currently trades at a price to earnings ratio of 10.74 while offering a 1.74% starting dividend yield.

While the company suspended its dividend in 2020, Flanigan's reinstated it in 2021 and paid an unusually large distribution that year to make up for the suspension. As a result, the company's five-year compound annual dividend growth rate stands at an inflation-beating 12.89%.

Flanigan's also recently announced a 9.1% dividend increase earlier this week.

It is worth noting, however, that the company pays an annual dividend rather than quarterly distributions. That said, Flanigan's maintains a very low payout ratio of around 19%.

The company has delivered a respectable 10-year average annual total return of 7.07%.

Not great, but significantly better than some large-cap blue-chip stocks. Kimberly-Clark Corporation, for example, delivered an average annual total return of just 1.08% over the same period.

As mentioned earlier, this is also a fairly liquid micro-cap stock. Flanigan's trades on the New York Stock Exchange and has an average daily trading volume of 1,149 shares. In other words, it's much easier to buy and sell shares of this business than most micro-caps, which trade over the counter and often have very low trading volumes.

So why aren’t I interested?

Simple. Restaurants and liquor stores are low-margin businesses.

Enormous retailers such as Walmart and Kroger can improve those margins through economies of scale, but a regional liquor store doesn't have that advantage. Likewise, while restaurants can serve signature dishes or offer a dining experience that gives them a moat, there's nothing preventing shoppers from buying their booze at Walmart, Walgreens, or the local gas station instead of at Big Daddy's.

Investing in Flanigan's is like buying into a regional business. Each share gives you a slice of the company's 32 restaurants, lounges, and liquor stores.

If you're interested in micro-caps and regional businesses, Flanigan's stock is relatively inexpensive, and the company has consistently raised its dividend faster than the official rate of inflation. Additionally, thanks to its NYSE listing, this is a fairly accessible niche business that anyone can invest in.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.