Columbia Dividend Income Fund, Its Risks And Performance: Many retirees’ portfolios are heavily weighted toward dividends. Investing in dividend-paying stocks through a mutual fund can often be more efficient than picking individual stocks. If you’re looking for an income fund that only invests in stocks, the Columbia Dividend Income Fund is the right choice.
Columbia Dividend Income Fund, Its Risk And Performance
In total, the fund’s assets as of December 20, 2021, total almost $38.16 billion. The mass of its holdings are in the form of large-cap U.S. stocks.
Managers look for companies that appear to undervalue compare for their long-term prospects. As a result, dividends may be increased as a result of increased cash flow.
Parent company Columbia Threadneedle Investments intends that the fund be used not only by retirees who take income distributions, but also by those still in the accumulation phase of life.
With the Russell 1000 Index, a broad index representing large American companies, Columbia Threadneedle measures fund performance.
Between 2009 and 2015, the fund’s performance was boosted by a rise in the value of US stocks. However, it lagged its benchmark slightly on a one- and three-year basis.
Since its inception last year, the fund has returned 21.84 percent and 14.29 percent over the past three years, respectively.
Dividend stocks historically less volatile than the broader stock market. Dividend payers in the United States tend to be large corporations with less volatile stock prices.
One of the fund’s primary goals is to protect against losses. Strong companies typically continue to pay dividends even when the market is down.
Investors can expect a return even during market downturns thanks to this strategy. Rankings
1117 large value funds are evaluate by U.S. News. According to experts in the fund industry, these are the best funds for long-term investors.
Investing in stocks, no matter how cautious one is, is fraught with peril. The only asset class held by this fund is large-cap U.S. equities.
Investors should prepare to sit through a downturn while small caps or non-US stocks rise. However, that asset class has a tendency to underperform other asset classes.