It’s possible that safer dividend stocks might soon fall out of favor, with the Fed about as dovish as it can be, said Pravit Chintawongvanich, head derivatives strategist at Macro Risk Advisors. The dividend index gained 0.4 percent on Friday, after falling 1.1 percent the previous day, with disappointing earnings from companies like Coca-Cola Co. dragging the gauge down.

“The upside to this stuff is limited. There’s this new theme emerging of risk, and let’s get long commodities, industrials and manufacturing,” Chintawongvanich said. “It feels like we’re close to end of rate-sensitive stocks because the Fed has maxed out on dovishness.”

Still, dividend payers have held on longer than other defensive plays, as the broader utilities and consumer staples industries post losses. Investors are willing to pay a premium searching for yield that’s absent in the bond market, said Kevin Mahn, president of Parsippany, New Jersey-based Hennion & Walsh Asset Management Inc.

“If the U.S. 10-year Treasury yields 1.77 percent, all of a sudden that telecom stock with 4.5 percent yield looks attractive,” said Mahn. “Investors are turning to high dividend paying equities because of the fact that the Fed appears to be dovish versus hawkish and a consistent need for investors to find yield when they can’t get traditional yield.”

Click here to read the entire article at Bloomberg.com.