Genter said many investors are looking to “smooth out” returns and want to reduce their risk.
“If you can lock out 4 to 5 percent at the beginning of the year, you’re in a very strong position and you’ve got an overall riding demand from the standpoint that the big baby-boomer population needs income,” he said.
“They’re equity-oriented, have to get cash flow—and with low bond yields, it will continue to be attractive.”
Counterpoint: 'Rude Awakening'
In the meantime, Schatz cautioned that people who use dividend stocks as a substitute for fixed-income producers are “in for a rude awakening” — when the market corrects in the second half of the year.
“I think we’re going to peak between 11,500 and 13,000 between Memorial Day and Labor Day,” he said. “People have to be careful.”
Moreover, Schatz said last night’s health bill vote was “bad” for dividend stocks.
“Let’s not underestimate what happened last night with dividend stocks,” he said. “Taxes are going to go up next year and dividend stocks are going to be right in the crosshairs.”
More Investor Insights:
CNBC Data Pages:
No immediate information was available for Genter or Schatz.