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Heading into 2015 I feel the most important component to a successful investing year is yield. My screening process for dividend stocks and retirement income (dividendpaycheck.org ) suggests a growing number of companies and sectors of the economy are fully valued and ripe for the inevitable pullback so many people expect in 2015. That’s not meant to be a doomsday statement, but a merely consideration for retirees to recalibrate their portfolios with yield plays that can help cushion a pullback as well as combat factors like inflation and rising interest rates which may make 2015 a challenging year for investors.

Our top five picks for year make the cut for a number of reasons. First, despite continued market highs we feel these stocks are undervalued by at least their annual dividend amount, suggesting opportunities for both growth and income. Secondly, with a combined average yield near 5%, the entire group could cut their dividend by 50% and they would still produce more income than many popular dividend ETFs and mutual funds. We don’t expect this to happen but feel the yield level provides ample room for lifestyle maintenance particularly because of where the 10-year treasury continues to trade.

Size, brand familiarity, and competitive advantages are also important considerations for retirees looking to add a few extra dollars to their pockets in 2015. Large well-known companies have survived a variety of economic cycles as well as both good and bad quarterly reports. At any given point, a company’s stock price can be affected by an economic report, regulatory change, or analyst down grade. However, opinions, news reports, and even share price don’t dictate dividend payments… they’re based on the number of shares held. A major benefit and source of financial relief during a market downturn or sector rotation.

Additional factors including dividend growth and stability, payout ratios, and volatility measures were also applied to compare and analyze the group against their peers.

AT&T (T)

AT&T’s healthy market share and subscriber base, persistent history of dividend increases, low volatility score, payout ratio with room to weather increasing competition and price wars in the telecom space, and 5% yield all come together for a relatively inexpensive price and solid investment thesis for 2015.

Phillip Morris (PM)

Leading market share and brand loyalty (Marlboro), growth opportunities in emerging markets as well as e-cigarettes and vapor products, an ongoing stock buyback plan that should provide long-term benefits to shareholders, and a positive trend in dividend increases positions this high yielder near the top of the list.

Bank of Nova Scotia (BNS)

Canada’s third largest bank offers comes with some exclusive insulation. The government maintains very high barriers of entry into the Canadian banking space (the top six banks in Canada control about 90% of the nation’s banking assets) and BNS maintains key exposure (and experience) in international markets including Latin America and Asia. The evolving Canadian consumer, international growth potential combined with years consistent yields near 4%, and an affordable P/E affords BNS a top 3 spot.

Blackstone Group (BX)