It appears more investors are eyeing dividend stocks ahead of the Federal Reserve's interest rate decision in September. Paul Baiocchi of SS&C ALPS Advisors thinks it is a sound strategy because he sees the Fed easing rates. ALPS is the issuer of several dividend exchange-traded funds including the ALPS O'Shares U.S. Quality Dividend ETF (OUSA) and its counterpart, the ALPS O'Shares U.S. Small-Cap Quality Dividend ETF (OUSM). Relative to the S&P 500 , both dividend ETFs are overweight health care, financials and industrials , according to Baiocchi. Mike Akins, ETF Action's founding partner, views OUSA and OUSM as defensive strategies because the stocks generally have clean balance sheets.

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Persons: Paul Baiocchi, CNBC's, Baiocchi, Mike Akins, OUSA, Akins Organizations: C Locations: U.S