Funds That Pay Dividends

Since President Bush formally introduced his economic stimulus plan two weeks ago, political and financial pundits have traversed miles of column inches debating its merits. A key piece of the plan is the elimination of taxes on dividends, the excess cash companies generate and send back to shareholders (i.e., the company's owners) to do with as they please.

Investors are understandably curious about the President's proposal, and so we've assembled a collection of articles that address the possible implications. Click here to peruse those, but read below to learn how the  Premium Fund Selector can help you identify high-quality, high-yielding equity mutual funds.

Even before the President's proposal, in fact, such funds were attracting attention, with the protracted bear market making stodgy old dividends like Aunt Ethel used to live on seem downright sexy. Unlike earnings, after all, companies can't fudge dividends: They either pay and grow them or they don't. That metric is a blunt instrument, of course, but it does provide a short-hand way of assessing corporate health.