Top 5 Equity Income Funds

Sure receiving dividends from stocks is a good thing.  Investing in dividend stocks is even better.  Equity Income Funds, on the other hand, are even better.  Equity income funds are funds that you can invest in that cover more than one dividend paying stock.

Equity income funds are defined as follows:

• Dividend income that is earned through an investment in stocks (equity).
• A type of mutual fund that invests in high-quality companies with a reliable history of dividend payments and growth in the dividend rate.
• Dividend paying stocks are usually those of large, well-established companies that are favored by moderately conservative investors and/or those seeking current income.
• In the mutual fund context, the investment objective will be a combination of generating both moderate current dividend income and moderate capital appreciation.

Here is a list of 5 of the top equity income funds based on historical return, but I ordered them in the order of dividend return instead.

1. J Hancock Lifestyle Mod Ptfl A (JALRX)

Current Yield: 7.01%

The investment seeks a high level of current income with some consideration given to growth of capital. The fund normally invests approximately 20% of assets in equity funds and approximately 80% in fixed-income funds. It may also have an equity/fixed-income fund allocation of 30%/70% or 10%/90%.MFC Global (U.S.A.) may determine in light of market or economic conditions that the normal percentage limitations to underlying funds should be exceeded to protect the fund or to achieve its objective. The fund may temporarily invest extensively in cash and cash equivalents for defensive purpose. It is non-diversified.

2. Russell LifePoints Cons Strat C (RCLCX)

Current Yield: 4.08%

The fund seeks to achieve moderate total rate of return through low capital appreciation and reinvestment of a high level of current income. The fund primarily invests in the Class S shares of several other Frank Russell Investment Company Funds. The fund seeks to achieve its investment objective by investing in different combinations of funds. The fund allocates its assets by investing in shares of a diversified group of funds. The fund distributes dividends quarterly and net capital gains annually.

3. Delaware Foundation Conserv Alloc A (DFIAX)

Current Yield: 2.31%

The fund invests primarily in shares of selected Delaware Investments Funds including fixed-income and equity funds. The fund allocates at least 45% of its assets to fixed-income funds and securities, 20% to equity funds and securities and up to 10% to international funds and securities. The fund offers dividends quarterly. The fund distributes capital gains in December.

4. HighMark Income Plus Allocation A (HMPAX)

Current Yield: 2.31%

The investment seeks income and secondarily capital appreciation. The fund normally invests either directly or through investments in underlying funds, between 60% to 80% of assets in fixed income securities and between 20 to 40% of assets in equity securities. Its strategic allocation target is 70% fixed income securities and 30% equities. The fund is the most conservative of the Asset Allocation Portfolio series. It may invest in other highmark funds and in equity and fixed income funds. The fund may also invest in exchange traded funds.

5. Forester Value Fund (FVALX)

Current Yield: 0.33%

This fund seeks maximum long-term capital growth. The fund invests in the stocks of large U.S. companies that it believes are undervalued and has great appreciation potential. The fund places special focus on companies whose current market prices are low in relation to earnings and have great appreciation potential. The fund distributes dividends and capital gains annually.

The 5 equity income funds listed here are the only ones out there but these have some of the best historical returns.  Equity income funds are a great option if you like stability in income and not the type who like risk.  Again equity income funds have different holdings to dividerisfy and reduce.

Have you subscribed yet? Use the form below. If you prefer to use a reader, click here.

If you don’t know what this means click here.