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Power Play: Dividend trade has room to run

A customer puts a bag of purchases into a shopping cart at a Wal-Mart Stores Inc. location in Los Angeles.
Patrick T. Fallon | Bloomberg | Getty Images

The Dow tops 18,000 during trading, the first time that has happened since July 21. After tumbling earlier in the year, the Dow is now up 3 percent year-to-date.

Despite the rally in equities, Burns McKinney, portfolio manager at NFJ Investment Group, tells CNBC's "Power Lunch" on Monday the dividend trade still has room to run.

Read More Dow tops 18K for first time since July

"The traditional high yielding sectors, like the bond proxies (utilities, staples) have gotten rich, but dividend payers as a diversified whole are now 2 multiple points cheaper than the ," McKinney said.

He still sees opportunities in 2 consumer staples names.

"Although staples as a whole are expensive, trading at over 20x earnings, there are pockets of value there, and we like Wal-Mart and Procter & Gamble," McKinney said.

Wal-Mart and Procter & Gamble are higher during trading.