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Power Play: Betting on mass transit

Workers weld frames for the new MiDi bus at New Flyer Industries in St. Cloud, Minn.
Jason Wachter | St. Cloud Times | AP
Workers weld frames for the new MiDi bus at New Flyer Industries in St. Cloud, Minn.

Stocks are sliding on Tuesday, giving up some of Monday's gains. The losses are also driving the Dow, S&P 500 and Nasdaq into negative territory for the month of May.

In this volatile environment, Jill Cuniff, President of Edge Asset Management, tells CNBC's "Power Lunch" you should invest in small-cap stocks that pay a dividend.

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One of her favorite areas to invest is mass transit. "Municipalities are ordering more transit buses as their finances have recovered following the financial crisis," Cuniff said.

A stock Cuniff likes is Canadian bus manufacturer New Flyer Industries, which has a dividend yield of 2.4 percent. It's the "largest transit bus manufacturer in North America [with] a 48 percent market share in transit buses and 42 percent market share for motor coach buses," Cuniff said.

New Flyer Industries is down more than 2 percent during trading.