As investors have moved into dividend stocks in their search yield, investment pros warned Friday that they should always think about valuation.
For example, some integrated oil companies have "horrendous" valuations, trader Tim Seymour said in an interview with CNBC's "Power Lunch."
"We just went through a terrible second quarter in terms of EPS for these guys, and yet people are clinging on. And actually, perversely, oil companies are protecting their dividends at the expense of investing in Capex and production," the managing partner at Triogem Asset Management said.
"You could make an argument that the dividend chase is something that is actually holding back even oil production."