This article originally appeared on ETF Focus. The link can be found here.
For much of the past couple of years, we've seen income investors abandon the fixed income markets and did their toes into the equities markets in search of higher yields. The Fed's widely expected rate hike in December made those dividend yields look slightly less attractive. If the Fed's forecast of three more hikes in 2017 comes to fruition, we may start to see a rotation out of dividend ETFs and back into fixed income.
With an improving outlook for fixed income yields and valuations on dividend stocks starting to look a little expensive, investors will want to approach their dividend ETFs with caution. Long term investors won't want to abandon dividend ETFs altogether, just be a little more picky about where their dividends are coming from.
The ALPS Sector Dividend Dogs ETF (SDOG) targets…
