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Strategies Of For Picking Dividend-Focused Funds

Thursday, April 5, 2012 - 5:24 AM
If you are being forced to move into stocks because of the low interest rates, high dividend mutual funds and ETFs are something to consider. Like all stocks, there are risks. Stock prices can fall substantially, and dividends can be reduced when companies run into trouble as they did in 2008.

One way to reduce some of this risk is to focus on funds that are diversified across many sectors. This WSJ article, How to Select a Dividend-Focused Fund, advocates for that type of diversification.

This US News article, Are Dividend ETFs the Best Income Alternative?, describes how investors must weigh the trade-offs between yield and risk.
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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
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