Dividends: Question and Answer
Question:
“Are there mutual funds which specialize only in dividend-paying stocks, and what are the pros and cons of this type of investment?”
Yes, there are plenty of funds that focus on dividend-paying stocks, and the iShares Dow Jones Select Dividend Index (ticker DVY) is an exchange-traded fund that has been popular for awhile now with dividend investors.
You can find plenty of large-cap value and blend funds loaded with dividend paying stocks. Morningstar Inc. analysts give good ratings to the Vanguard Equity-Income fund (ticker VEIPX), Clipper Fund (CFIMX), Oakmark (OAKMX), Sound Shore (SSHFX) and T. Rowe Price Equity-Income (PRFDX).
More questions and answers about dividend stocks and funds.