The FBR equity research team put out a note to clients Monday with its best dividend stock recommendations, saying the names will return, on average, 30 percent over the next 12 months.
"With low interest rates, investors are now searching for yield but must be careful to avoid potential credit problems," the note says.
"To that end, we have created a list of our favorite 16 stocks that offer an attractive yield and potential share appreciation. We believe these dividends are safe. We think the fundamentals are improving, and we are optimistic about the prospect for share appreciation."
Here are 10 of those dividend picks: