123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Education >> View Article

An Introduction To Dividend Yield Funds

Profile Picture
By Author: Artham Vidya
Total Articles: 24
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Companies that have a stable business and a good track record in performance are also known for paying out dividends regularly. The stocks of such companies that consistently declare high dividends are known as high dividend yield stocks. Compared to growth companies, which need to use their surplus profits to reinvest in their business to fuel growth, established companies, which are past the growth stage and are in consolidation phase can afford to reward their shareholders by paying out excess profits in the form of dividends.

Mutual fund schemes that invest in the stocks of such high dividend paying companies are called dividend yield schemes as they play on the dividends declared every year by such companies.

Why should you look at Dividend Yield Mutual Funds?

When you invest in a mutual fund scheme, you are normally looking either for appreciation in your portfolio or a regular income. Therefore, when you invest in a mutual fund scheme that has high dividend yield stocks in its portfolio you are providing an insurance against market volatilities and fluctuations.

A quick ...
... analysis of such dividend yield mutual funds have shown that they provide moderate but consistent returns even when the markets are very uncertain. In fact over a period of five years or so such schemes outperform large caps, mid-caps and multi-cap funds since tend to depreciate less when the market is in correction mode. They can be used as a defensive element especially the market sees steep spikes and sharp falls.

What makes these schemes so attractive is their ability to generate balanced returns irrespective of any market condition.

Bottomline: Dividend Yield funds deliver moderate but stable returns over longer periods.

Total Views: 206Word Count: 281See All articles From Author

Add Comment

Education Articles

1. Guaranteed Grades: Pay Someone To Take My Exam
Author: Doug Macejkovic

2. Blocks Before Books
Author: Michale

3. Azure Devops Training Online | Azure Devops Online Training
Author: visualpath

4. Learn Python Programming - from Basics To advanced
Author: vishal more

5. Data Engineering Course In Hyderabad | Aws Data Analytics Training
Author: naveen

6. Oci Online Training | Oracle Cloud Infrastructure In Hyderabad
Author: visualpath

7. Best Salesforce Data Cloud Certification Training
Author: visualpath

8. The Benefits Of Online Dry Needling Certification
Author: Daulat

9. Top Google Cloud Data Engineer Training In Bangalore
Author: Visualpath

10. Aima’s Management Diploma: The Smart Choice For Future Leaders
Author: Aima Courses

11. How Regular Mock Test For Bank Help You Crack Bank Exams
Author: Ayush Sharma

12. Debunking The Myth: Is Preschool Just Playtime?⁠
Author: Kookaburra

13. Cps Global School: A World-class Learning Destination In Chennai
Author: CPS Global School

14. Chennai Public School: Shaping Future Leaders Through Excellence In Education
Author: Chennai Public School

15. "transform Your Data Analysis With Lcc Computer Education's Excel Training"
Author: Khushi Gill

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: