Investors have again become interested in shares of companies with high dividend levels. This trend has emerged as the market awaits the end of the US Federal Reserve’s monetary tightening cycle, writes Reuters.

In the two weeks ended July 19, net inflows into the ProShares S&P 500 Dividend Aristocrats ETF were $33 million, the biggest two-week gain since January this year, according to Refinitiv Lipper data cited by Reuters. The fund’s shares are up 7.5% in 2023.

The ProShares S&P 500 Dividend Aristocrats ETF is a passive fund that follows the S&P 500 Dividend Aristocrats Index. The index consists of so-called dividend aristocrats, or large-cap companies that have increased their dividends annually over the past 25 years.

As the agency notes, the Fed’s earlier aggressive rate hikes pushed yields on short-term Treasury bonds above 5%, reaching their highest level since 2007. These yields boosted the bond’s popularity among investors, putting pressure on many dividend-paying stocks that had been attractive assets during a period of low interest rates.

The market is now betting that the Fed is unlikely to continue raising rates, Reuters notes. In this environment, dividend stocks could become attractive again if Treasury yields fall significantly.