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The Dividend Yield: Stock Mutual Funds and ETFs That Generate Income

by John Markese

The Dividend Yield: Stock Mutual Funds And ETFs That Generate Income Splash image

Are you looking for an investment that has the potential to produce a growing income stream and long-term capital appreciation along with reasonable risk? Bond funds won’t suffice; their income is a prisoner of prevailing interest rates, and their capital appreciation in the long term is essentially zero, a combination that is exposed to inflation risk.

REITs (real estate investment trusts) come close, but the dividends from REITs do not receive favorable tax treatment as do the dividends from domestic common stocks.

Convertible bond funds have capital appreciation potential as the stocks underlying the convertibles can appreciate, but the interest stream on convertible bonds does not grow over the long term.

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John Markese is the former president of AAII.


Discussion

Howard Roll from California posted about 1 year ago:

This article should either be removed or updated. Data is from 2008.


same from California posted about 1 year ago:

Sorry for ignorant comment. The information in the article is the important part.


Praful Vora from Pennsylvania posted 3 months ago:

It is waste of time to read article which is 6 years old and when I read it without knowing date I was shocked to see such high loss . Please put uptodate articles so we don't loose fath in Aaii


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