Investors are trimming exposure to high-dividend stocks as the Fed signaled it is looking at its first interest rate hike in nine years. The higher rates would bolster payouts on more stable fixed-income assets and make these dividend stocks less attractive, especially after the multi-year run. [Bond Proxy ETFs Show Some Investors Believe Rates Will Rise]
Still, DTN could prove to be the exception when compared to high-yield ETF rivals.
“By following a rules-based Index that screens and weights companies by dividend yields, DTN can potentially raise a portfolio’s dividend yield and provide increased income to investors. DTN achieves this by tending to over-weight higher dividend-yielding stocks and under-weight the lower dividend-yielding stocks,” said WisdomTree.
WisdomTree Dividend ex-Financials Fund
Tom Lydon’s clients own shares of DVY.