4 Broker-Favorite Dividend Stocks to Buy Now

For the novice investors, market volatility makes investing a precarious and panicky activity. These edgy investors prefer to either stay away from the market all together or to wait on the sidelines until the market regains steadiness.

But, volatility is the inescapable and inevitable characteristic of the risky market, and it depends on a number of local, industry-level, global and political factors. The recent volatility that the market has been witnessing can be attributed to concerns stemming from fragile growth in China & other global markets, steep fall in oil price, declining commodity prices, uncertainty in the Middle East and the ambiguity surrounding the Federal Reserve's stance on interest rate hike.

Given the inescapable nature of volatility, the stocks which fetch relatively higher dividends even during torrid times must be better bets for the smart investors. Added to this, if such stocks have the endorsement by the professionally experienced brokers, it makes more sense for the investors to bet on them.

4 Dividend Stocks That Brokers Love

Let's find 4 high-dividend stocks that are also loved by brokers with the help of the Zacks Stock Screener.

We have selected Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks for which dividend yield is more than 3%. In order to narrow down the list, we have taken those stocks for which 75% or more brokers have given strong or moderate buy recommendations. Notably, all these stocks have market capitalization or more than $500 million.

Further, in order to nail the 4 top stocks, we have taken those with a VGM score of either ‘A' or ‘B,' with the help of our style score system. Here, V stands for Value, G for Growth and M for Momentum and the VGM score is the weighted average of these scores.

EarthLink Holdings Corp. ELNK – With a market capitalization of $594.6 million, this Atlanta, GA-based IT Services industry stock is engaged in providing IT services and communications to business and residential customers mainly in the U.S.

Zacks Rank #2
VGM Score: ‘A'
Dividend Yield (%): 3.53
No of Brokers Rating Strong Buy or Buy: 75%

KAR Auction Services, Inc. KAR – This Carmel, IN-based specialty retail industry stock is engaged in providing vehicle auction services in the U.S., Canada, Mexico, and the U.K. KAR Auction Services has a market capitalization of $5.1 billion.

Zacks Rank #1
VGM Score: ‘B'
Dividend Yield (%): 3.12
No of Brokers Rating Strong Buy or Buy: 100%

MDC Partners Inc. MDCA – With a market capitalization of $1.1 billion, this New York-based advertising and marketing services industry company is engaged in providing marketing communication and consulting services in the U.S., Canada, and the U.K.

Zacks Rank #2
VGM Score: ‘A'
Dividend Yield (%): 3.71
No of Brokers Rating Strong Buy or Buy: 85.7%

Mercer International Inc. MERC –This Vancouver, BC-based paper and paper products industry stock is engaged in manufacturing and sell of paper products worldwide. Mercer International has a market capitalization of $556 million.

Zacks Rank #2
VGM Score: ‘A'
Dividend Yield (%): 5.35
No of Brokers Rating Strong Buy or Buy: 100%

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