3 Dividend Stocks for Investors Worried About the Risk On Rally (SDY, DVY)

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January 23, 2012 11:52am NYSE:DVY NYSE:SDY

Anyone who has ever been pulled over by the cops for speeding knows all too well the pejorative query of the arresting officer: “What’s your hurry?” I mention this because it seems practically everyone these days is in a rush to ride the risk-trade and get back to financial

freedom as soon as possible, a mystical place that used to go by the name breakeven. But at least one investment pro is loathe to bail on his blue-chips and dividends, preferring the steady, familiar predictability of McDonald’s (NYSEArca:MCD) – at an all-time high – to chasing the white hot momentum of a Netflix (NYSEArca:NFLX) that’s gained about 40% in the past month.

“We conclude that, while the Europeans may not like McDonald’s, it is one of the last places they can afford to eat,” says Matt McCormick, VP and portfolio manager at Bahl & Gaynor. He says despite an obvious slowdown in Europe and the UK, the $100 billion heavy weight of the Consumer Discretionary sector saw strength in its sales in those regions with average meal costing below $6. He also likes their growth in emerging markets and the earnings that should generate to power future dividend increases, which have gone up for 35 straight years.

See the full “Breakout” interview below:

Related ETFs: iShares Dow Jones Select Divide (NYSEArca:DVY), SPDR S&P Dividend ETF (NYSEArca:SDY)

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