An Elegant and Transparent Dividend-Focused Strategy
This fund targets profitable firms with a long history of raising dividend payments.
I recently highlighted several funds that paid the price for chasing high-dividend-yielding stocks in an article titled "The Perils of Funds That Narrowly Target High-Yielding Stocks."
Putting too much emphasis on dividend yield can harm the total return of your equity-income investment. It's important to focus on an investment's prospective total return--not solely its yield--as higher yields usually imply greater risk.
Adam McCullough does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.