Low U.S. interest rates can only support the stock prices of the few companies that consistently produce earnings growth, strategist Simeon Hyman said Friday.
The Federal Reserve has yet to follow up on an initial quarter percent rate hike in December, leaving investors to search for yield elsewhere. Policymakers have indicated they intend to hike rates twice this year, but that would still leave monetary policy relatively loose.
Still, the S&P 500 remains mired in an earnings recession. Earnings for the first quarter are on track to end the reporting period down more than 5 percent from the previous year, according to Thomson Reuters I/B/E/S. Excluding the energy sector, S&P earnings are roughly flat.
Hyman, head of investment strategy at Proshares Advisors, said companies that have delivered earnings growth of more than 2 percent this season, such as dividend growth names, represent an elite group.
"If you look at stocks that have a really long track record of dividend growth, you've got about 50, 60 names in the S&P 500, but on average they've shown up with growth. And they're a little expensive, but not much compared to the rest of the market, and not much compared to their history," he told CNBC's "Squawk Box."