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5 High Yield Dividend Stocks That Gained More Than 30% in 2018

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Per a growing consensus among Wall Street economists, factors that provided impetus to the U.S. economy in 2018 may soon wither away. They believe that issues such as the fading effects of the Republican tax cut bill, imposition of tariffs along with tighter financial conditions will dent economic growth.

The recent volatility in the U.S. stock markets has bred pessimism among investors. The three major stock indices tumbled roughly 5% by the end of the previous week, marking the worst performance in more than eight months. While the Dow tanked 1,149.51 points, the Nasdaq and the S&P 500 slid 4.9% and 4.6%, respectively. Notably, the S&P 500 lost 2.2% year to date (YTD), the Dow inched down 1.8% YTD and the Nasdaq rose 0.4% YTD.

The equities went south post the news that the CFO of Huawei Technologies was arrested on charges of potential violations of U.S. sanctions on Iran. Investors feared that the incident would complicate the trade war negotiations between the United States and China.

Moreover, growing concerns over the escalating trade tensions is creating uncertainty among investors. President Trump has already imposed tariffs on Chinese goods worth billions. Many economists believe that the trade war is already affecting the U.S. economy. The imposition of tariffs on Chinese goods by the U.S. administration and Beijing’s tit-for-tat actions are likely to mar U.S. GDP growth.

Along with these factors, there is also an apprehension that the U.S. Federal Reserve will continue to hike interest rates next year. As such, it will be difficult for businesses to borrow from the market and will also lead to tight financial conditions.

In short, it will be prudent for investors to take precautions against increasing market volatility and reshuffle their portfolio with stable stocks, which have performed impressively.

How High Yield Dividend Stocks Can Enrich Your Portfolio

Stocks with solid dividend yield and high returns offer excellent choices for investors seeking to create a portfolio that performs well in a volatile market and offer downside protection.

Consistent dividend payouts indicate a company’s financial strength and stability. Considering the current market volatility and an expected slowdown in the foreseeable future, it will be a prudent move for investors to add some high yield dividend stocks to their portfolio.

We have utilized the Zacks Stocks Screener to find five dividend paying companies that offer a high dividend yield of at least 4% and has also gained more than 30% this year.

Arbor Realty Trust, Inc. (ABR - Free Report)

This specialized real estate finance company has a dividend yield of 9.3% and its shares have rallied 34.8% YTD. Moreover, the stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.



BG Staffing, Inc. (BGSF - Free Report)

The company provides temporary staffing services in the United States. It has a dividend yield of 5% and its shares have surged 47.3% YTD. The stock also carries a Zacks Rank #2 (Buy).



Guess?, Inc. (GES - Free Report)

The company designs, markets, distributes and licenses casual apparel as well as accessories per the American lifestyle and European fashion sensibilities. It has a dividend yield of 4.1% and its shares have gained 32.6% YTD. The stock currently carries a Zacks Rank #3 (Hold).



Omega Healthcare Investors, Inc. (OHI - Free Report)

This self-administered real estate investment trust (REIT) has a dividend yield of 7.1% and its shares have rallied 34.6% YTD. The stock currently carries a Zacks Rank #3.



Natural Resource Partners L.P. (NRP - Free Report)

The company primarily focuses on the business of owning, managing and leasing mineral reserve properties. It has a dividend yield of 4.8% and its shares have surged 47.2% YTD. The stock also carries a Zacks Rank #3.



In addition to the stocks discussed above, would you like to know about our 10 top tickers to buy and hold for the entirety of 2019?

These 10 are painstakingly handpicked from over 4,000 companies covered by the Zacks Rank. They are our primary picks poised to outperform in the year ahead. Be among the first to see the new Zacks Top 10 Stocks >>

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