Investing in small caps is risky and not for the faint-hearted, but investors are always lured into the idea of trying to back a stock that out of nowhere will go on to be a big winner.

Although it's knock-out capital growth that investors usually chase in the small cap space, John Abernethy from Clime Investment Management has also come up with three stocks that he thinks are good for generating income, something that all investors crave.