In December 2016, the U.S. Fed raised the interest rate for the second time in the current rate hike cycle. Three more rate hikes were expected for this year, one of which took place in March. In a low interest rate environment, companies that have increasing dividends or offer high dividend yields look attractive to income-seeking market participants. But the yield offered by these companies may be considered less competitive in a rising interest rate environment. Exhibit 1 shows how various S&P DJI Asian dividend and REIT indices have performed in U.S. interest rate cycles since 2004.