Two charts make the case for high-dividend stocks

Opportunities in these high-dividend stocks
Tony Dwyer: Beware record highs!
Big week for retail earnings

Rising bond yields create a natural headache for high-dividend stocks. After all, if investors can make more in bonds, then they don't have to look to bond-like equities in order to find yield. But according to one market technician, those high-yielding equities should do just fine even if rates continue to tick higher.

Todd Gordon of TradingAnalysis.com points out that even as long-term bond yields have risen, pushing down bond prices, the SPDR S&P Dividend ETF (SDY) has held up surprisingly well.

"If you look at the SDY ETF overlaid with the TLT [an ETF that tracks the prices of long-term Treasury bonds], you would see that the two have a high degree of correlation. But recently, during this recent bond rout that we've seen at the longer end of the curve, the SDY has held extremely well," Gordon said Monday on CNBC's "Power Lunch."

"So what we've seen is the SDY act very well in this environment of rising interest rates."

Examining the high-dividend ETF on its own, Gordon finds even more to like.

"You can see that it's held in so well, it has just gone sideways in that consolidation" pattern, he said. "If the TLT were to bottom out, bond rates start to head a little bit lower, that might break this guy out of the consolidation around $80. So I actually like this guy to the upside."

The real draw for the S&P Dividend ETF can't be found on the charts, of course—it can be found in investors' bank accounts every three months. The SDY currently pays out a dividend yield of 2.25 percent, versus 1.85 percent for the SPDR S&P 500 ETF (SPY).