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Let the Companies Pay You Comments

  • By Galia Gichon
  • March 03, 2011


assistant-on-phoneIn the world of conservative investing, you can’t “get rich quick.” However, you can get more out of your investments—by picking stock mutual funds that pay dividends or have yields above 1%.

What exactly is a dividend? The dividends come from the underlying companies’ earnings, and they give you a bit of an extra return. Payment schedules can vary, but many issue checks on a quarterly basis.

Why would you want dividend-producing funds in your portfolio? Because they add security. Even in hard times, dividends can help to boost your overall returns. The average dividend yields today range from 1–3%.

Here are some examples of dividend mutual funds. I am NOT recommending you buy or sell these funds; they just serve as an illustration:
 
Vanguard Dividend Growth (VDIGX)—Yield of 1.86% and has paid dividends consistently for years. T. Rowe Price Dividend Growth (PRDGX)—Yield of 1.24% and has paid dividends consistently for years. Fidelity Real Estate Income (FRIFX)—Real estate mutual funds can be a great boon to a portfolio. This has a yield of 4.82%, which adds income and helps diversify your portfolio.
Stock up. Do you own any stocks or funds that pay dividends?

Galia Gichon will be teaching 4 Weeks to Your Strong Financial Foundation, a four-week LIVE teleclass, starting April 7.

Tagged in: Investing, How to invest
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