Yellen’s Dovish Talk Ideal for Dividend ETF Bulls

Federal Reserve Chief Janet Yellen sounded awfully dovish in her views on further interest rate hikes last week and that's a good thing for dividend stocks, said Eric Ervin, CEO of Reality Shares. 'You really want to focus on those growers, the companies that can actually grow the dividends which can keep pace with higher rates,' said Ervin. Ervin's Reality Shares DIVS ETF (DIVY) - Get Report is down around one percent thus far in 2016. The DIVY seeks to deliver long-term capital appreciation based on the growth of dividends, not stock price, of large cap companies. By isolating the growth of aggregate dividends, DIVY attempts to provide investors a number of potential benefits including portfolio diversification, as well as risk mitigation and lower volatility due to stock price gyrations.