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5 Stocks Income Investors Will Love to Buy for 2017

The stock market witnessed a roller-coaster ride in 2016 amid several domestic and international happenings. Investors were on tenterhooks with events ranging from plunge in oil prices , concerns over Chinese economy, low interest rates, Brexit to Donald Trump's surprising presidential victory, and the fed rate hike for the second time since the 2008 crisis.

Against such a backdrop, the Dow Jones Industrial Average and the S&P 500 have gained 13.7% and 10.1%, respectively, year to date.

Some key areas, such as the policies under Trump's administration, the Fed's actions on raising rates further, movement in oil price and of course the gradual effect of Brexit on the U.K., EU (European Union) and the overall global markets, are expected to keep 2017 volatile as well.

And generating steady returns by braving the volatility requires picking high quality dividend stocks . This strategy not only helps in countering the short-term market challenges but is also appropriate for those investors who prefer to stay afloat in the long term.

The Winning Strategy

Selecting the right dividend stock may be a tedious task. Here is how to make it easy.

With the help of Zacks Stock Screener, we have selected stocks that outperformed the respective industry return, year to date. They have dividend yield of more than 6% and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Moreover, we narrowed down the list with VGM Score of 'B' or better.

The Right Picks

Here are the five stocks that met the criteria:

PennyMac Mortgage Investment TrustPMT : Based in Westlake Village, CA, the company invests in wide range of residential mortgage loans and mortgage-related assets in the U.S. Since the beginning of the year, the stock has gained 8.8% as against a loss of 1.6% for the Zacks categorized Real Estate Operations industry.

VGM Score: 'A'

Zacks Rank: 1

Dividend Yield: 11.32%

Invesco Mortgage Capital Inc.IVR : The Atlanta, GA- based company is a real estate investment trust that primarily focuses on financing and managing residential and commercial mortgage-backed securities and mortgage loans. Year to date, the stock has grown 19.6%, outperforming the 8.1% gain for the Zacks categorized REIT and Equity Trust industry.

VGM Score: 'B'

Zacks Rank: 2

Dividend Yield: 10.8%

VGM Score: 'B' Zacks Rank: 1 Dividend Yield: 6.3%

Williams Partners L.P.WPZ : Based in Tulsa, OK, the company is a leading master limited partnership engaged in gathering, processing and interstate transportation of natural gas and natural gas liquids. Since the beginning of the year, the stock has incraesed 36.8%, slightly outperforming the 36.6% gain recorded in the Zacks categorized Energy and Pipeline - Master Limited Partnerships industry.

VGM Score: 'B'

Zacks Rank: 2

Dividend Yield: 8.93%

VGM Score: 'B' Zacks Rank: 1 Dividend Yield: 6.3%

Gaming and Leisure Properties, Inc.GLPI : The Wyomissing, PA-based company is mainly focused on acquiring, financing, and owning real property to be leased to gaming operators under "triple net" lease arrangements. Holding solid growth prospects, the stock has gained 9.1% year to date, outperforming the 2.8% gain for the Zacks categorized REIT and Equity Trust - Other industry.

VGM Score: 'B'

Zacks Rank: 2

Dividend Yield: 7.92%

VGM Score: 'B' Zacks Rank: 1 Dividend Yield: 6.3%

Transmontaigne Partners L.P.TLP : Based in Denver, CO, the company offers integrated terminaling, storage, transportation and allied services for customers in the distribution and marketing of light refined petroleum products, heavy refined petroleum products, crude oil, chemicals, fertilizers and other liquid products. Since the beginning of the year, the stock has gained a whopping 66.1%, significantly outperforming the 33.9% gain for the Zacks categorized Oil and Gas - Production and Pipelines industry.

VGM Score: 'B'

Zacks Rank: 1

Dividend Yield: 6.3%

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WILLIAMS PTR LP (WPZ): Free Stock Analysis Report

TRANSMONTN PTNR (TLP): Free Stock Analysis Report

PENNYMAC MORTGE (PMT): Free Stock Analysis Report

INVESCO MORTGAG (IVR): Free Stock Analysis Report

GAMING AND LEIS (GLPI): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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