For the slightly more adventurous, there are a number of high-yield dividend stock ETF options available. For instance, the PowerShares S&P 500 High Dividend Portfolio (NYSEArca: SPHD) has a 3.28% 12-month yield, iShares Core High Dividend ETF (NYSEArca: HDV) has a 3.27% 12-month yield and RevenueShares Ultra Dividend Fund (NYSEArca: RDIV) has a 3.24% 12-month yield. Over the past year, SPHD rose 27.7%, HDV increased 20.7% and RDIV gained 31.0%.
“Low bond yields allow dividend yield as a style to outperform,” Garthwaite said. The relationship “has been particularly close in the U.S.”
Garthwaite also warned that the correlation has not manifested in European equities as high-dividend stocks in Europe fell behind in recent months while government bond fell. For instance, the Euro Stoxx 50 Index rose 15.2% over the past year, whereas something like the First Trust STOXX European Select Dividend Index Fund (NYSEArca: FDD), which tracks dividend-paying European stocks, gained 7.3% over the past year.
For more information on dividends, visit our dividend ETFs category.
Max Chen contributed to this article.