It is known that Federal Reserve will not stop raising interest rate till there are indications that inflation starts to cool.

Foremost, dividend yield stocks are under the onslaught of rising interest rate. Back in the days of low interest rate, investors simply borrow funds at a low cost and purchase dividend yield stock toearn the difference. Those merry days are over and thus we have seen dividend yield stock crashing down. 

But does that translate to higher dividend yield given their price is lower now? Not necessarily. Take real estate investment trusts for example, most of them must have a dividend policy payout ratio of 85-90% in order to be able to tagged as "REIT". But how does these companies really functions? Quite a bulk of their assets in fact is purchased via debt, long-term debts.

Thus it is important to deep dive to find out the intrinsic details of these debts whether they are fixed or/and floating. in the climate of rising interest rate, dividend play stocks or REITs whose has low debt/equity ratio and a sizable portion of their debts in long-term fix rate will be beneficial for investors as their cost of funding will be less impacted compared to their peers and their dividend yield will be more attractive.