Despite several concerns, the Nasdaq has been outperforming its fellow benchmarks right from the start of 2015. While weak second quarter earnings season and a continuous slump in crude prices dragged the Dow down by 2% over the last month, the Nasdaq gained nearly 1.2%. It also outpaced the S&P 500, which rose a meager 0.2% over the past month. However, a 4.3% decline in iShares Nasdaq Biotechnology (IBB) dampened the benchmark yesterday.

Meanwhile, some of the major multinationals listed in the index suffered due to foreign exchange headwinds reflected in their dismal second quarter results. Moreover, strong economic data including recovery in second quarter GDP and a strong labor market raised the possibility regarding a rate hike in September, which had a negative impact on the benchmarks recently.

In this volatile scenario amidst the increasing concerns about a rate hike, investors may opt for high yield stocks in order to obtain consistent income.

Economic Rebound

According to the “advance estimate,” the second quarter GDP rose 2.3%, compared to the revised 0.6% growth rate witnessed in the first quarter. Additionally, the personal consumption expenditure (PCE) price index increased at the highest pace in more than three years during the quarter.

Though the recent jobs report from Automatic Data Processing, Inc. (ADP - Analyst Report) indicated a slowdown in labor market, the overall scenario remained positive. The report showed that the private sector generated 185,000 jobs in July, lower than the previous month’s tally of 229,000.

Meanwhile, a reading of the Institute for Supply Management's (ISM) services index in July came in better than expected. The ISM Services Index increased to 60.3 in July, the highest level for the index since Aug 2005.

Rate Hike Worries

Renewed concerns regarding a September rate hike had a negative impact on benchmarks including the Nasdaq in the past few sessions. Last Tuesday, Atlanta Fed Reserve president Dennis Lockhart signaled that the Fed is preparing for a rate hike in September. In an interview with The Wall Street Journal, Lockhart said that the given economic scenario is “appropriate” to opt for a rate hike in near future unless the economy witnesses a "significant deterioration."

Last week, the Federal Reserve Chairwoman Janet Yellen stated that the U.S. economy will strengthen and expects the central bank to hike interest rates “at some point this year.” The Fed identified labor market conditions and inflation rate as the two main determinants to decide on rate hike. As labor market conditions recovered at an impressive rate and inflation rate is gradually picking pace, investors are speculating that there is a high possibility that the Fed will raise key interest rate in September.

4 High-Yield Picks

Even if the there is no rate hike in September, high-yielding stocks that also promise significant return remain good picks. They are safe choices and promise strong income streams. Meanwhile, the Nasdaq stocks that have a high dividend yield are in a better position in this scenario as the benchmark is likely to continue its positive trend. Our selection in also backed by good Zacks Growth Score and Zacks Rank.

We narrowed down our choices with the help of our new style score system.

PetMed Express, Inc. (PETS - Analyst Report) is America's largest pet pharmacy, which provides services through its 1-800-PetMeds.

Apart from having a Zacks Rank #1 (Strong Buy), PetMed has a dividend yield of 4.27% and a Value Style Score of ‘B.’ The company also has a strong forward P/E ratio of 16.93.

American National Bankshares Inc. (AMNB - Snapshot Report) operates as a one-bank holding company that provides financial services in Virginia and North Carolina.

This Zacks Rank #2 (Buy) company has a dividend yield of 3.88% and a Value Style Score of ‘B.’ The company also has a forward P/E ratio of 14.54.

Rent-A-Center, Inc. (RCII - Analyst Report) is the largest rent-to-own operator in the U.S. offering durable goods such as consumer electronics, appliances, computers, furniture and accessories.

RCII holds a Zacks Rank #2 (Buy) and has a dividend yield of 3.51%. Rent-A-Center also has a Value Style Score of ‘A’ and a forward P/E ratio of 12.37.

Computer Task Group Inc. (CTG - Snapshot Report) provides information technology (IT) staffing, IT solutions, and application management outsourcing services in North America and Europe.

Apart from having a Zacks Rank #2 (Buy), CTG has a dividend yield of 3.50% and a Value Style Score of ‘A.’ The company also has a strong forward P/E ratio of 16.75.