Although the economy needs to improve before the Fed raises key rates, some dividend payers might act as good hedges amid higher rates, while others have something to lose, says Morningstar's Josh Peters.
Income investors concerned about heavy government-bond concentration in the Barclays Aggregate Bond Index should consider dividend payers and the bonds of countries with low debt/GDP ratios, says the Princeton professor.
Independent. Insightful. Trusted. Morningstar provides stock market analysis; equity, mutual fund, and ETF research, ratings, and picks; portfolio tools; and option, hedge fund, IRA, 401k, and 529 plan research. Our reliable data and analysis can help both experienced enthusiasts and newcomers.