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.

Share this article


About the author

John Markese is the former president of AAII.
John Markese Profile
All Articles by John Markese

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.

The answer is simple: stock mutual funds and exchange-traded funds (ETFs) with relatively high dividend yields.

What They Are

To read more, please become an AAII Registered User or CLICK HERE.

First:   
Last:   
Email:

              
John Markese is the former president of AAII.


Discussion

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

posted 7 months ago by Howard Roll from California

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

posted 7 months ago by same from California

You need to log in as a registered AAII user before commenting.
Create an account

Log In