3 Active Funds That Balance the Risks and Rewards of Dividend-Income Investing
These funds may offer some downside protection at a time when stock and bond yields are low and valuations full.
Fund Spy
Mentioned: T. Rowe Price Dividend Growth (PRDGX)
, Vanguard Equity-Income Inv (VEIPX)
, Invesco Diversified Dividend A (LCEAX)
, Vanguard Dividend Appreciation ETF (VIG)
, Vanguard High Dividend Yield ETF (VYM)
This article was originally published in the June 2017 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor here.
"Anybody that prefers bonds today to stocks is making a big mistake." That's what Warren Buffett said in a May 2017 interview about the prospects of investing in a 30-year bond versus equities in the interest-rate environment at the time. Little about that environment has changed since, and Buffett recently reaffirmed his view that stocks, despite trading at record levels, offer a better deal than bonds.
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Alec Lucas does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.