With global bond yields at all-time lows, dividend stocks have been the alternative for investors searching for any kind of kickback. Jim Paulsen, chief investment strategist at Wells Capital Management says global markets are heading for a rebound, and investors should look overseas instead of relying on "dividend aristocrats."
"There's a lot of market messages saying there's a global market revival," Paulsen told CNBC's "Squawk on the Street" Monday. "I would prepare for that by going offshore and overweighting those markets."
He pointed to developed markets up 15 to 20 percent off their lows, and emerging markets up 45 percent. Westpac's global data surprise index made its biggest and fastest move upwards since the recovery in March, Paulsen said.
He recommended diving into more cyclical areas rather than relying on U.S. dividend-yielding stocks.
"I think we might be en route to a global synchronized bounce at a time when a lot of people are concerned about growth weakening," Paulsen said.
In August, Paulsen said markets will mostly "march in place," but we may see another leg up, with the S&P breaking 2,200 or 2,250. But overall, he said this year "the better action will be abroad."