PEY: A Gem Among High Dividend ETFs

Dividend growth as a means of trumping inflation could and arguably should serve to highlight the advantages of the ETFs that focus on dividend growth stocks. That group is comprised of well-established ETFs that emphasize dividend increase streaks as well as a new breed of funds that look for sectors chock full of stocks that have the potential to be future sources of dividend growth.

SEE MORE: Low U.S. Interest Rates Boost International Dividend ETFs

“This market environment’s current yield-buying frenzy focus comes as Treasury bond yields have fallen to record lows. When the obsession with yield will end is anyone’s guess. Perhaps the Federal Reserve actually raising interest rates will be the remedy to offset set what appears more and more to be a yield-chasing bubble which has resulted in record-highs in terms of valuation,” adds ETF Daily News.

For more news and strategy on the Dividend ETF market, visit our Dividends category.

PowerShares High Yield Equity Dividend Achievers Portfolio