The unpredictability has led some analysts to reiterate their recommendation to buy dividend stocks. According to Morgan Stanley, the MSCI Asia Pacific ex-Japan High Dividend Index outperformed the MSCI Asia Pacific ex-Japan index in the first quarter of the year, albeit by only 0.58%. The cautious investors' sentiment also drives allocation toward Quality Dividend stocks," the investment bank's analysts wrote in an Apr. These translate into a higher UST bond yields and particularly favoring dividend stocks to outperform." The latter has a forward dividend yield of 8%, according to Morgan Stanley, comfortably higher than the average of 5.1% on the screen.

---

Persons: Morgan Stanley, Morgan, CNBC's Michael Bloom Organizations: MSCI Asia, Asia, UST, U.S . Treasury, China Overseas Property Holdings, China Medical System Holdings, Bank of China Locations: Japan, Asia, Pacific, China, Taiwan