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Choosing Your Funds Wisely

Views 19KMar 6, 2024

Two tips for picking dividend mutual funds

After learning why you should consider dividend funds amid uncertain markets, let's know how to pick them wisely.

1. Dividend payout frequency is usually shown in the name or documents

You can find dividends funds on moomoo via Funds tab > Rankings > Filter > If Pay Dividends > Yes > Confirm.

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A fund may have "dividend" or "Dis" in their names. MDis, QDis, and YDis suggest the fund pays out dividends monthly, quarterly, and yearly, respectively.

To view a fund's dividends history, enter its Details page on moomoo and tap Summary > Fund Documents or Dividends.

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2. A bit more research matters

In dividend funds' reports, you could find the dividend yield (i.e., distribution yield). Funds' dividend yields are usually not identical, and they are not guaranteed, either.

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Source: Dividend payout data from two mutual funds' fact sheets

Please note that not all high-dividend funds are good choices. Other factors to consider include your risk appetite, the competence of the fund manager, the long-term performance, the stability of dividend payouts, and the expense ratio.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy.

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