Funds That Invest In Dividend Stocks

So if you want to invest in dividend stocks, what are your options? Here with some answers, Christopher Davis. He`s the fund analyst at Morningstar. What`s been the track record on funds that are specializing in dividend stocks? Well, recently these funds have looked a little sluggish. They didn`t rally as strongly as some other funds in the big rally last year. And this year they`ve lagged the market by a little bit. Investors have gravitated toward faster growing firms, more aggressive investments and you know dividends aren`t very sexy. They`re not aggressive so these have funds have looked a little slow.

I think that investors should necessarily chase income. Sometimes companies that pay a lot of income aren`t great companies. Investors don`t like them for a reason and so you might be investing in something that`s going to eventually run into trouble. So I would invest in funds that are run by experienced managers, great long-term records and invest in companies that have proven financial stability.

Source: Nightly Business Report

Related Articles:

• Three Dividend Stocks With A Perfect Risk Score
• 7 Dividend Stocks For The Ultimate In Deferred Gratification
• 3 High-Yield Telecom Dividend Stocks
• 3 Simple Steps For A Successful Retirement
• 8 Dividend Stocks With The Right Stuff