Dividend ETFs, though, have started to slow down in light of the rising rate environment. [Rising Rates Turn Some Dividend ETFs Into Laggards]

Moreover, investors have been buying these dividend stocks since the financial crisis as a safer investment, driving up valuations.

“The aristocrats are a pretty narrow group, and a lot of people have already piled into that group,” Ed Clissold, U.S. market strategist for Ned Davis Research, said in the article. “A lot of those dividend aristocrat stocks are now over valued.”

Nevertheless, steady dividend stocks have outperformed high-yielding stocks over the long term. According to Ned Davis Research, a high-yield stock portfolio has lagged a dividend growers portfolio by 1.5 percentage points per year over the past 35 years.

For more information on dividends, visit our dividend ETFs category.

Tom Lydon’s client own shares of DVY.