Economic fundamentals for both developed and emerging markets are still uncertain at the moment. The Eurozone debt crisis is not going away, and in general global growth is not going to be taking off right away. The factors in the market are supportive of a low-yield environment for the near term.
However, critics believe that the recent run on dividends is making the asset category unsustainable, especially if the economy improves and investors take on riskier stock picks, which pay lower or no dividends.
“A crowded trade is always risky,” Vadim Zlotnikov, chief market strategist at AllianceBernstein, said. Zlotnikov noted that any signs of an economic upswing could end the dividend rally.
Other dividend ETFs:
SPDR S&P Dividend ETF
For more information on dividend payers, visit our dividend ETFs category.
Tisha Guerrero contributed to this article.