The Right Dividend Stock Fund for You

Dividend stock strategies come in many different flavors. Here's what to look for.

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If you're shopping for a dividend-stock fund, do what you do when you buy cereal: Look at what's inside the box (or the portfolio, in this case) so that you know exactly what you're getting. You can't assume that just because a fund has dividend in its name (as hundreds do) that it will closely resemble and perform similarly to other dividend funds, or that it will be a good fit for your investment goals.

"There are a lot of different flavors and a huge dispersion of strategies," says Sean Bandazian, an analyst at Cornerstone Wealth.

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Contributing Writer