High Yield Dividend Income

High-Yield Dividend Income mutual funds and ETFs invest in income-producing equities, with... High-Yield Dividend Income mutual funds and ETFs invest in income-producing equities, with yields that can often go above 7%. Their yields are usually higher than other issuers’ securities because the market believes there is a decent chance that they won’t be able to meet their obligations to investors. In the case of equities, a high yield suggests the company may be paying above-average dividends and it may cut its dividend and/or face insolvency in the future, if it is unable to generate enough cash flows to both run the company efficiently and reward shareholders. High-Yield Dividend Income mutual funds and ETFs are only appropriate for aggressive investors who are willing to take on more risk in search of higher total returns (dividend and capital growth). Conservative investors should stick to safer funds that primarily own less risky securities. Last Updated: 03/21/2023 View more View less

High-Yield Dividend Income mutual funds and ETFs invest in income-producing equities, with yields that can often go above 7%. Their yields are usually higher than other issuers’ securities because the market believes there... High-Yield Dividend Income mutual funds and ETFs invest in income-producing equities, with yields that can often go above 7%. Their yields are usually higher than other issuers’ securities because the market believes there is a decent chance that they won’t be able to meet their obligations to investors. In the case of equities, a high yield suggests the company may be paying above-average dividends and it may cut its dividend and/or face insolvency in the future, if it is unable to generate enough cash flows to both run the company efficiently and reward shareholders. High-Yield Dividend Income mutual funds and ETFs are only appropriate for aggressive investors who are willing to take on more risk in search of higher total returns (dividend and capital growth). Conservative investors should stick to safer funds that primarily own less risky securities. Last Updated: 03/21/2023 View more View less