Is There a Dividend ETFs Bubble?

More than $10 billion has flowed into dividend exchange traded funds so far this year and now some analysts are talking about a potential bubble in income-producing stocks and ETFs. For example, WisdomTree Emerging Markets Equity Income (NYSEArca: DEM) and Vanguard Dividend Appreciation (NYSEArca: VIG) have each seen more than $2 billion move in the door in 2012.

However, Michael Clarfeld, portfolio at ClearBridge Advisors, tells Morningstar he doesn’t think there is a bubble in dividend stocks, although some traditional income sectors are becoming slightly overvalued. Many popular dividend stocks are established, very large-cap companies.

Source: ETF Trends

Related Articles:
- Best Stocks for 2012
- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World Are Found Here
- A Roadmap To Build Wealth With Dividend Stocks
- The Good, The Bad and The Ugly of Dividend Stocks