A market rotation is about to begin, and most investors would regret not knowing where capital is likely to shift over the coming months and quarters. As is typical in the financial world, everything has to be tied to a benchmark to judge whether an asset class or specific name is overvalued or undervalued, and that is exactly where investors can begin today.
When it comes to dividend stocks, yield is the king of this sort of analysis, but the question remains where that benchmark is set. Dividend yields can (and should) be tied to the leader in the yield space, which is the U.S. ten-year Treasury bond yield, currently hovering between 4.4% and 4.5%.
