5 Best Performing Dividend Stocks Of 2015

Many investors prefer dividends over capital gains for a steady stream of income. So they look for stocks with high dividend yields. Not only do these stocks offer steady income but also provide a cushion against equity market risks.

The U.S. stock market has been caught in a bull-bear tug of war this year. On the one hand, the domestic economy treaded a moderate growth path as reflected in increased consumer confidence, higher spending power, renewed optimism in housing recovery and an improving job market. Additionally, a wave of mergers and acquisitions brightened up the stock market.

On the other hand, rate-hike uncertainty, an aging bull market, lofty stock valuations, strong dollar, lower oil prices and global growth concerns including the Greece crisis and China slowdown have awakened the bear.

This instability has compelled many investors to play defensive and depend on the dividend-paying stocks for steady returns. After all, dividend paying stocks are proven outperformers over the long term and are relatively safer for creating wealth.

While the risk tolerance of an individual investor determines his appetite for growth versus dividend stocks, it’s generally prudent to balance the portfolio to keep a mix of both. Also, while some companies may offer a special dividend to distribute a windfall, it is always advisable to choose a consistent performer with strong fundamentals.

Best of the Year

In addition to robust yields, most of the dividend paying stocks have generated handsome returns this year as well. Each of the stocks below offer dividend yields of 5% or more. With the help of the Zacks Stock Screener and by combining high dividends, rising earnings estimates, and other valuation criteria, we have handpicked five promising stocks. Not only do these stocks have a high dividend yield but they also have a Zacks Rank #1 (Strong Buy) or #2 (Buy), indicating the likelihood of upside in shares over the next month or so.

Preferred Apartment Communities, Inc. (APTS - Snapshot Report)

Dividend Yield 5%

Preferred Apartment Communities, Inc. is a real estate investment trust. The company acquires and operates multifamily properties primarily in the United States. It also acquires senior mortgage loans, subordinate loans or mezzanine debt secured by interests in multifamily properties, membership or partnership interests in multifamily properties and other multifamily assets. Preferred Apartment Communities, Inc. is based in Atlanta.

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