"If you are going to add new money to the market, I would be very careful not to do it in those dividend darlings — so things like utilities and consumer staples and telecoms … because I feel like that is a very crowded trade," Hogan told CNBC on Thursday.
"It is starting to unwind a bit, but when you think about the fact that those (stocks) are trading in a multiple that is probably five times average and yielding about 200 basis points less than average … I would be much more comfortable putting it in growth than defensive right now," he said.
Record-low bond yields across the world have helped fuel demand for stocks, which have hit a seven-year rally. The three major U.S. stock indexes — the S&P 500, Dow Jones industrial average and the Nasdaq Composite — all closed at new highs on Monday for the second time in less than a week.
Bruno Verstraete, managing partner at Zurich investment firm Lakefield Partners, said it was easy to increase yield in the fixed income space — but returns would still be lower than in equities.
"Equities are the new bonds. If you look at fixed income, it is very easy to get yield, either you take more risk or you go long duration. (But) comparing all of these dividend darlings as you call them with their own bonds, sometimes you have infinite more return on creating the dividend," he told CNBC on Thursday.