A Lot of Risks With Dividend Funds
September 16th, 2010
Although there are surely a lot of great things to be said about owning dividend funds as an alternative to bonds and other types of fixed income investments, there are some risks worth noting. The first is that dividend funds do not necessarily pay out every month or every quarters. For investors to find this kind of investment, they may be looking for some time and in the meantime they will be stuck pulling money out of their invested capital. The other thing is that dividends are only as “good” as the companies that pay them. That means they can get cut, reducing both income and capital base for the investor.
Entry Filed under: Investing