Equity Investing Information

Stocks - Mutual Funds - Private Equity - Real Estate

Dividend Funds

A twist on the common equity-based mutual fund, dividend funds invest primarily in stocks that pay a higher-than-average quarterly or annual dividend. They are often heavily involved in financials, especially banks, credit card companies, as well as income-producing energy companies.

Although they are known for producing a good stream of investment income, the asset value of these funds can take a big hit during an economic downturn, even if dividends on the stocks remain steady.

This type of fund can be a great choice if it's long term income you're looking for, but isn't recommended for short-term and risk-averse investors.