When a small company becomes a very large company, the shares of the company would appreciate multiple times. This is because small cap schemes bet on small companies with a very high growth potential. While there are many dividend mutual funds out there, the Federated Strategic Value Dividend Fund, Vanguard High Dividend Yield Index Fund, and Vanguard Equity Income Fund stand out as the top options for those seeking an attractive income stream.Small cap mutual fund schemes have the potential to offer superior returns over a long period. This strategy allows investors to own a diversified portfolio of higher-yielding, dividend-paying stocks, which should help lower their risk. Investors seeking to earn some passive income can use dividend mutual funds to achieve that goal. However, it has a much higher minimum investment of $50,000. It's worth noting that Vanguard offers a lower-cost version of this fund (Admiral Shares), with a 0.19% expense ratio. This mutual fund had an expense ratio of 0.28% (about half the industry average) and a minimum investment of $3,000. The fund had a 30-day SEC yield of 2.2% and distributed dividends quarterly. The top 10 fund holdings at the end of the second quarter of 2021 were: The actively managed mutual fund benchmarks its returns against the FTSE High Dividend Yield Index.Īs of the end of August 2021, the fund had $50.5 billion of assets and held 192 stocks. It invests in companies dedicated to consistently paying high dividends. The Vanguard Equity Income Fund aims to provide investors with above-average current income. Vanguard Equity Income Fund Investor Shares ( NASDAQMUTFUND : VEIPX) It's also worth pointing out that Vanguard offers a similar exchange-traded fund ( ETF ), Vanguard High Dividend ETF ( NYSEMKT:VYM), with a slightly lower expense ratio (0.06%) and a low minimum investment of one share ($102.52 as of Sept. The fund also has a minimum investment of $3,000. This mutual fund had an expense ratio of 0.08%, well below the mutual fund industry's average expense ratio. The fund had a 30-day SEC yield of 2.7% and distributed dividends quarterly.
With a gross expense ratio of 1.19%, it's almost double the mutual fund industry's average of 0.6%.
The one mark against the fund is its expense ratio. The fund makes it easy for investors to collect passive income because it distributes dividends monthly. Treasury Note, at 1.3%.įurther, the gross yield is above the 3.8% yield of its benchmark. That was considerably above the S&P 500 's 1.3% dividend yield and the 10-year U.S. The fund had a gross weighted average dividend yield of 4.5% and a 30-day SEC yield of 2.9%, reflecting the dividends and interest earned after deducting the fund's expenses. British American Tobacco ( NYSE:BTI): 3.7%.Philip Morris International ( NYSE:PM): 4.8%.AbbVie ( NYSE:ABBV): 4.9% of the portfolio.Select Dividend Index.Īs of the end of August 2021, the fund had $7.6 billion of assets and held 45 stocks. This actively managed mutual fund benchmarks its performance against the Dow Jones U.S. It invests in stocks with higher dividend yields than the broad equity market index and dividend growth potential. The Federated Strategic Value Dividend Fund aims to generate income and long-term capital appreciation. The Federated Strategic Value Dividend Fund ( NASDAQMUTFUND : SVAAX) Three standout dividend yield-focused mutual funds are: 1.