Dividends4Life: Funds That Invest In Dividend Stocks

Funds That Invest In Dividend Stocks

Posted by D4L | Sunday, December 26, 2010 | | 0 comments »

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

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