Dividend Paying Mutual Funds – Which One To Choose?
When it comes to dividend paying funds which ones are best, and what should you look for? Conservative investors often choose funds that offer dividends and have for decades. This sector has also started attracting younger individuals as well, because of the income stream that these investments offer. These funds choose top quality companies that are solid and have a reputation for value. These stock picks offer dividends regardless of the economy in many cases, and this income during rough economic times is very desirable. Blue chip stocks are in high demand but funds that only include blue chips may have a higher cost because these stocks are in high demand. Other companies may have a solid history and well known name but not be considered blue chip, and some mutual funds will also choose these options as well.
All of the dividend paying funds available will have specific costs, risks, possible returns, and ideal strategies. It is important that every individual investor do all of the necessary research, so that each possible fund can be evaluated closely and then compared with other possible funds. This will identify which mutual fund pays dividends and also meets all of the other investing criteria put in place. Fidelity Investments’ Equity Income II fund, ticker FEQTX, is one mutual fund that offers a stellar history and dividends both. The return for this fund is currently 9.5% and It invests primarily in domestic stocks. This fund has assets valued at $4.8 billion and it pays dividends on a regular basis.
Another of the top dividend paying funds is the Wasatch Strategic Income Fund, with a symbol of WASIX. This fund has a 12 month yield that exceeds 3% and an expense ratio of 0.95%. The annualized distribution yield of the fund is 3.18% and the past performance has stood out in the crowd. This fund is considered a top pick for many investors when dividends are the goal. Allianz NFJ Dividend Value Fund, ticker PEIDX, is another good choice for dividend investors. The fund has an annualized distribution yield of 2.65% and a 3 year performance rate of 8.22%. This may not be the right choice for everyone but it is a top pick for some investors and financial experts.
Deciding on which dividend paying funds to invest in should not be done quickly. Every investor and situation is different and unique, and the right fund for one investor may be completely wrong for another even if both want investments that offer dividends. Thorough research will identify all of the funds which closely meet the investing criteria and objectives. Once these funds have been identified a careful comparison between fund choices will help each investor narrow the list down to the final possibility. Some funds may not be right because of the risks involved, while others may choose investment holdings that do not fit well with the strategies and investment methods used by an investor. The selection process is time consuming and does require some effort but the end result can be better investment choices.