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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Dividend Mutual Funds Lose Some Mojo

FYI: Mutual funds that invest in stocks that pay dividends ran a little ahead or a little behind the S&P 500 for much of the past 10 years. But dividend mutual funds started a pronounced trend of underperformance in the fall of 2013 and have yet to recover.
Regards,
Ted
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Enlarged Graphic:
http://news.investors.com/photopopup.aspx?path=webLV0625_1K.jpg&docId=758935&xmpSource=&width=1000&height=1109&caption=&id=758936

Comments

  • IMHO these IBD mutual fund articles are a total waste of 1's and 0's and/or ink and paper if they are printed in the hard copy newspaper. Ted's copied opening paragraph contains all the useful info if one can call it that.

    After the initial first or second paragraph they usually highlight the stock picks of one fund. Is this an attempt to enlighten one regarding the fund or inform you of how they rate/rank the chosen stocks. You can decide for yourself.

    In this article IBD selected to illuminate the choices of EVTMX Eaton Vance Dividend Builder. I thought that they might have illuminated why the dividend strategy wasn't working out possibly starting with the fact that the funds TTM yield of 1.35% is nearly wiped out by it's annual ER of 1.05%. Hard to beat the S&P 500 with those kind of numbers and making up the 5.75% front-end load to boot. No surprises here. An investor might have done better just outright owning the three stocks IBD chose to highlight, in this case Apple, Microsoft and Verizon.
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