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Do you prefer stocks that offer both dividend income and the real possibility of capital gains? You might be interested in our list below:

We began by screening for low-debt dividend stocks: those paying dividend yields above 1%, with sustainable payout ratios below 50%, and debt-to-equity ratios below 0.1.

Then we screened for bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers, who often have more sophisticated market data on hand than main street investors, expect these names to outperform.

For an interactive version of this chart, click on the image below. Tool provided by Kapitall, analyst ratings sourced from Zacks Investment Research.

As a recap, these names have:

- Low debt: Total Debt / Equity ratio <.1

- Dividend yields between 1% and 8%

- Market caps above $300 million

Do you think money managers are making the right call on these dividend paying stocks? Use this list as a starting-off point for your own analysis.

1. American Eagle Outfitters, Inc. (AEO): Operates as an apparel and accessories retailer in the United States and Canada. Market cap at $4.2B, most recent closing price at $21.22. Net institutional purchases in the current quarter at 14.8M shares, which represents about 8.61% of the company's float of 171.80M shares. Dividend yield at 2%, and debt-to-equity at 0. The top 2 holders of the stock are Royce & Associates, and The Vanguard Group.

2. Abercrombie & Fitch Co. (ANF): Operates as a specialty retailer of casual apparel for men, women, and kids. Market cap at $3.96B, most recent closing price at $49.75. Net institutional purchases in the current quarter at 5.0M shares, which represents about 6.83% of the company's float of 73.19M shares. Dividend yield at 1.4%, and debt-to-equity at 0.07. The top 2 holders of the stock are FMR LLC, and Wellington Capital Management.

3. Duff & Phelps Corporation (DUF): Provides independent financial advisory and investment banking services worldwide. Market cap at $665.15M, most recent closing price at $15.68. Net institutional purchases in the current quarter at 3.2M shares, which represents about 9.1% of the company's float of 35.18M shares. Dividend yield at 2.3%, and debt-to-equity at 0.05. The top 2 holders of the stock are FMR LLC, and Eagle Asset Management.

4. DeVry, Inc. (DV): Provides educational services worldwide. Market cap at $1.53B, most recent closing price at $24.07. Net institutional purchases in the current quarter at 4.3M shares, which represents about 7.57% of the company's float of 56.81M shares. Dividend yield at 1.4%, and debt-to-equity at 0. The top 2 holders of the stock are FMR, LLC, and Ariel Investments.

5. KBW Inc. (KBW): Operates as an investment bank specializing in the financial services industry in the United States and Europe. Market cap at $533.94M, most recent closing price at $15.49. Net institutional purchases in the current quarter at 2.1M shares, which represents about 7.07% of the company's float of 29.71M shares. Dividend yield at 1.3%, and debt-to-equity at 0.03. The top 2 holders of the stock are T. Rowe Price, and JPMorgan Chase.

6. Quality Systems Inc. (QSII): Develop and market Healthcare information systems. Market cap at $1.14B, most recent closing price at $19.14. Net institutional purchases in the current quarter at 2.4M shares, which represents about 6.03% of the company's float of 39.79M shares. Dividend yield at 3.7%, and debt-to-equity at 0. The top 2 holders of the stock are Brown Capital Management, and Columbia Wanger Asset Management.

*Institutional data sourced from Fidelity.

Source: Money Managers Are Buying These 6 Low Debt Dividend Stocks