The trucking industry is worth hundreds of billions of dollars per year. Uber is going after this market with Uber Freight, an online platform that matches truckers with...Technologyread more
Drone strikes attacked an oil processing facility at Abqaiq and the nearby Khurais oil field on Saturday.Marketsread more
Trump said oil would be released if needed to keep the market well supplied and he would expedite the approval of pipelines in Texas and other states.Marketsread more
Saudi Aramco is aiming to restore by Monday about a third of its crude output that was disrupted after drone attacks on two key oil facilities, The Wall Street Journal...Marketsread more
Apple's new iPhones can still send texts, download apps, and make video calls, but the company spends a lot of time and effort marketing its new phones as powerful photography...Technologyread more
Some U.S. manufacturers say tariffs, if targeted, will help address longstanding unfair trade practices like intellectual property theft.Traderead more
Supporters of a $15 minimum wage ballot initiative in Florida argue the state's inflation-tied pay hikes have not gone far enough.2020 Electionsread more
Saudi Arabia shut down half its oil production Saturday after drone strikes hit the world's largest oil processing facility in an attack claimed by Yemen's Houthi rebels.Politicsread more
Trusii's hydrogen water machines were supposed to help users with their health problems, but customers claim the company is involved in a giant scam.Technologyread more
The decoupling of the world's two weightiest economies seems as inescapable as its extent and global impact remains incalculable.Politicsread more
BlackBerry has reinvented itself to become a leader in securing mobile communications and in embedded communications. Next year it plans to roll out new products. CEO John...Evolveread more
A number of dividend-paying stock sectors are trading at "fairly extreme valuations" and will come down — it's just a matter of timing, strategist Vadim Zlotnikov said Monday.
"You know that the expected returns over the next couple of years are likely to be significantly lower than they've been in the past. You know that the investors' willingness to pay up simply for the companies that raise their payouts is somewhat irrational," the co-head of multi-asset solutions and chief market strategist for AB Global said in an interview with CNBC's "Power Lunch."
It's difficult to know at what point the trend will break, but the most important red flag will be wages, he added.
"I do think that any talk of fiscal policy, any signs of significantly stronger wage growth and I think those groups will start to underperform," he said.
In their search for yield, investors have piled into dividend-paying stocks. One popular trade, utilities, is among the best performing sectors of the this year, up about 13 percent.
Zlotnikov said the problem is twofold. First, people are crowded into the trade based on the assumption economic growth and rates will remain weak for a long time. Second, many of the highest dividend-yielding companies have already increased their payouts aggressively and/or are paying out more than they make. That makes them susceptible to dividend cuts and underperformance, he explained.
And even if interest rates remain lower for longer, that's not a guarantee dividend stocks will continue to outperform. In fact, last year they underperformed by 12 percent when rates were flat, Zlotnikov pointed out.
"A decline in these stocks or relative underperformance actually doesn't require significantly higher rates," he noted.
He also cautioned investors to take their entire portfolio into consideration because there may be other assets in addition to dividend-paying stocks that are very sensitive to interest rates.
"The real risk is that your entire portfolio could be under pressure" if rates started to rise, he said.
— CNBC's Brenda Hentschel contributed to this report.