Top Dividend Stock Picks From 2015: A Look Back at Five Strong Performers

For investors seeking reliable income over capital appreciation, dividend stocks have long represented a balanced approach to building wealth. In 2015, a year marked by market volatility and economic uncertainty, the appeal of dividend-paying companies grew even stronger. Many portfolios that year emphasized dividend stocks as a defensive strategy, leveraging their ability to provide steady payouts while offering some protection against broader equity market swings.

Why Investors Turned to Dividend Stocks During 2015

The year 2015 presented a complex landscape for equity investors. The U.S. economy showed mixed signals—domestic growth remained moderate, yet consumer confidence and housing sentiment improved alongside a strengthening job market. A wave of corporate mergers and acquisitions buoyed sentiment in early portions of the year.

However, headwinds emerged. Interest rate expectations, concerns about valuations, a surging dollar, declining oil prices, and fears around China’s economic slowdown created considerable uncertainty. Global crises, including the Greek debt situation, added to the challenging environment. This confluence of factors led many investors to adopt a more conservative stance, turning to dividend stocks as a reliable income source.

The appeal was clear: dividend-paying equities historically outperform the broader market over extended periods, and they provide regular cash flows that reduce dependency on price appreciation alone.

The Selection Framework: How These Five Stocks Were Identified

Identifying which dividend stocks deserved attention required a rigorous screening approach. Using tools like the Zacks Stock Screener, analysts combined multiple criteria to narrow the field. The focus extended beyond yield alone. Each candidate stock needed to demonstrate:

• Dividend yield of 5% or higher
• Zacks Rank positioning of #1 (Strong Buy) or #2 (Buy)
• Positive earnings momentum with consistent surprise performance
• Reasonable valuation metrics
• Solid projected earnings growth over the coming five years

This multifaceted methodology ensured that selections weren’t merely high-yielding plays but rather stocks with fundamental strength likely to sustain and grow their payouts.

Five 2015 Dividend Stock Winners Across Different Sectors

The following five stocks emerged as the standout dividend stock performers of 2015, each offering yield at 5% or above combined with positive fundamental catalysts:

Real Estate Investment Trusts Leading the Charge

Preferred Apartment Communities, Inc. (APTS) offered a 5% dividend yield backed by a diversified multifamily real estate portfolio. Based in Atlanta, the company acquired and operated apartment properties while also investing in mortgage-related debt secured by multifamily assets. The REIT had maintained quarterly dividend payments since 2011, and in June 2015 raised its distribution from 12.5 cents to 18 cents per share. With a market cap near $299 million and carrying a Zacks Rank #1 rating, the stock posted positive earnings surprises in two of the prior four quarters at an average of 0.77%. Five-year projected earnings growth stood at 7%, and year-to-date performance reflected a gain of approximately 45.4%.

Arbor Realty Trust Inc. (ABR) occupied a distinct niche within the real estate finance sector, specializing in bridge loans, mezzanine investments, and mortgage-related securities. The company maintained a consistent annual dividend of 60 cents per share, translating to an 8% yield. Despite a smaller market capitalization around $362 million, Arbor demonstrated strong execution, beating earnings consensus in three of four recent quarters by an average of 48.7%. Its Zacks Rank #1 designation and modest year-over-year gains of approximately 4.9% reflected stability within a volatile year.

Energy Infrastructure: The Highest-Yielding Option

Northern Tier Energy LP (NTI) represented the most aggressive dividend stock on this list, offering a striking 16% yield. Operating as an independent downstream energy company with refining, retail, and pipeline operations serving the PADD II region, Northern Tier generated income across multiple business lines including SuperMom’s Bakery. Headquartered in Ridgefield, Connecticut, and carrying a Zacks Rank #1 rating, the company had consistently elevated its dividend while exceeding consensus earnings estimates by 28.5% across three of the last four quarters. The $2.39 billion market-cap stock demonstrated 8.2% expected five-year earnings growth and delivered approximately 16.2% year-to-date appreciation in 2015.

Spectra Energy Partners, LP (SEP), a master limited partnership formed by Spectra Energy Corp and based in Houston, focused on natural gas transportation and storage across North America. With a substantial $13.43 billion market capitalization and a robust 6% dividend yield, this Zacks Rank #2 holding had beat EPS expectations in all four recent quarters at an average rate of 34.7%. The company’s consistent dividend growth track record and projected five-year earnings expansion of 5.4% made it an institutional favorite among dividend stocks seeking both yield and growth.

Shipping: Capturing Cyclical Opportunity

Ardmore Shipping Corporation (ASC), based in Mahon, Ireland, provided ocean transportation for petroleum products and chemicals through voyage charters and time charters to oil majors and chemical companies globally. With market capitalization hovering near $324 million, Ardmore had paid quarterly distributions since 2013 and raised its quarterly payout from 6.6 cents to 31 cents in November 2015. The 10% dividend yield reflected the cyclical strength in shipping markets that year. Despite the cyclicality typical of its industry, Ardmore maintained a Zacks Rank #1 rating, posting earnings beats in all four recent quarters at an average 25.4% clip. The company’s projected 10% five-year earnings growth rate suggested sustainability beyond temporary market peaks.

The Broader Lesson From 2015’s Dividend Stocks

These five 2015 dividend stock selections shared common characteristics beyond their above-average yields. Each combined reliable income generation with underlying earnings momentum, demonstrated by consistent beats against consensus forecasts. The real estate, energy, and shipping sectors proved particularly fertile ground for identifying dividend stocks with both income and appreciation potential.

The selections also reflected a strategic principle: rather than chasing yield alone, disciplined investors applied multifaceted criteria to ensure that dividend stocks possessed the fundamental strength to sustain and potentially grow their distributions over time. The presence of Zacks Rank endorsements signaled that each stock possessed forward-looking momentum in addition to its backward-looking yield appeal.

The Bottom Line: Why These 2015 Dividend Stocks Mattered

Investing in quality dividend stocks provides a framework for generating reliable income that can expand alongside business growth. That principle applied in 2015 and remains relevant for long-term wealth building. When dividend stocks combine attractive yields with solid earnings growth and positive analyst momentum, they offer a compelling blend of near-term income and long-term capital appreciation.

The decade-plus history of dividend stock performance demonstrates that consistent payers with strong fundamentals tend to outperform the broader market. By applying rigorous screening criteria and prioritizing quality alongside yield, investors can construct portfolios that balance income needs with growth aspirations—a timeless approach exemplified by the dividend stocks that stood out in 2015.