ETF Options to Capitalize on a Yield-Starved Europe | Page 2 of 2 | ETF Trends

Alternatively, the low-yield environment could fuel a rush to more attractive income-generating assets.

“If you can buy equities or any type of bond you’re going to go there instead,” Jan Loeys, head of global asset allocation at JPMorgan, said in the article. “Each market will get swamped with money simply because you have positive yields — nothing to do with fundamentals.”

However, potential dividend stock investors should be aware that a prolonged deflationary environment could pose a serious problem as consumers hold off spending and industries see slower growth. On the other hand, low inflation would make fixed-income assets more attractive as bonds provide higher real yields.

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

Max Chen contributed to this article.