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4 Best dividend mutual funds Yielding 3% or more for successful Investing

With interest rates being so low, it has raised the importance of dividend investing. Investors that buy dividend mutual funds either reinvest their dividends from the funds to purchase more stock or use the funds as another income stream. Listed below are some of the best dividend mutual funds to invest in. As always you should do your research when looking to invest in a particular fund or stock.

Vanguard High Yield Index Fund

This index fund seeks to track a benchmark that provides broad exposure to U.S. companies that are dedicated to consistently paying larger-than-average dividends. In addition to general stock market risks, the fund’s emphasis on slower-growing, higher-yielding companies can also mean that its total return may not be as strong in a significant bull market. This income-focused fund may be appropriate for investors who have a long-term investment goal and a tolerance for stock market volatility.

Expense ratio: .08%

Minimum Investment: $3,000, this is also available as an ETF

Dividend Yield: 

Click this ‘link’ to open an account with Vanguard: 

Vanguard Real Estate Index Admiral (VGSLX)

This fund invests in real estate investment trusts—companies that purchase office buildings, hotels, and other real estate property. REITs have often performed differently than stocks and bonds, so this fund may offer some diversification to a portfolio already made up of stocks and bonds. The fund may distribute dividend income higher than other funds, but it is not without risk. One of the fund’s primary risks is its narrow scope, since it invests solely within the real estate industry and may be more volatile than more broadly diversified stock funds.

Expense ratio: 0.12%

Minimum Investment: $3,000

Dividend yield: 

Click this ‘link’ to open an account with Vanguard: 

Vanguard Equity Income Fund Investor Shares (VEIPX)

This fund is designed to provide investors with an above-average level of current income while offering exposure to the stock market. Since the fund typically invests in companies that are dedicated to consistently paying dividends, it may have a higher yield than other Vanguard stock mutual funds. The fund’s emphasis on slower-growing, higher-yielding companies can also mean that its total return may not be as strong in a significant bull market. This income-focused fund may be appropriate for investors who have a long-term investment goal and a tolerance for stock market volatility.

Expense ratio: 0.28%

Minimum Investment: $3,000

Dividend yield: 

Click this ‘link’ to open an account with Vanguard.

Schwab U.S. Dividend Equity ETF (SCHD)

The investment seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100™ Index. To pursue its goal, the fund generally invests in stocks that are included in the index. The index is designed to measure the performance of high dividend yielding stocks issued by U.S. companies that have a record of consistently paying dividends, selected for fundamental strength relative to their peers, based on financial ratios. The fund invests at least 90% of its net assets in stocks that are included in the index.

Expense ratio: 0.06%

Minimum Investment: $3,000

Dividend yield: 

Click this ‘link’ to open an account with Schwab. 

The Income Fund of America

The fund’s investment objectives are to provide you with current income while secondarily striving for capital growth. This income strategy focuses on dividend-paying stocks and fixed income, which has historically led to lower volatility and better downside resilience versus the S&P 500. The strategy uses a mix of stocks and bonds, including high-yield debt, and may invest in equities outside of the U.S. Invests primarily in common or preferred stocks, convertible securities, bonds, U.S. and other government securities, cash and cash equivalents.

If you are ready to get started investing in Dividend Mutual Funds please read the related articles listed below.

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