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Dividend Funds: How They Can Vary In Yield and Value

FYI: (Click On Article Title At Top Of Google Search)
ne way to cope with uncertainty is to find solace in the tried and true. For investors, that’s dividend-paying stocks.

About $1.5 billion flowed into U.S. dividend-oriented mutual funds last month, breaking an outflow streak and making the group the U.S. equity category that has suffered the least net outflows this year, according to EPFR Global. Recent performance plays a role: Standard & Poor’s 500 dividend-paying stocks are down 2.7% this year, just a third of the loss of nondividend shares.

But dividend seekers should pick funds carefully. Some funds emphasize dividend growth over current income, which is why yields on payout-oriented funds tracked by Morningstar range from 0.16% to a generous 4.3%. Some are more value-oriented than others; the average valuation of the portfolios ranges from as cheap as 10 times trailing earnings to a pricey 23 times, Morningstar reports. The S&P 500, in comparison, yields 2.3% and has a trailing P/E of 18.
Regards,
Ted
https://www.google.com/#q=Dividend+Funds:+How+They+Can+Vary+in+Yield+and+Value+Barron's
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