8 Great Dividend Mutual Funds

Funds that hold dividend-paying stocks aren't just a safer harbor in troubled times.

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Funds that hold dividend-paying stocks aren't just a safer harbor in troubled times. The best of these mutual funds offer exposure to some of the strongest companies and some of the steadiest value-minded managers, qualities that tend to pay off over the long haul.

"Dividends provide a sense of security," says Barry Fennell, senior research analyst at fund tracker Lipper. He points to a variety of studies showing that reinvested dividends are a major component of stock market returns.

Our search for some of the best dividend mutual funds insisted on low investing minimums, no load charges, reasonable expenses, and a combination of attractive yields and above-average returns, both in the short term (over the past 12 months) as well as the long run (the past 10 years, with one exception for a fund that launched in late 2009). We found eight worthy and diverse funds for your portfolio.

*All yields and returns are as of June 18. Yields were calculated by adding up a fund's distributions over the past year and dividing the total by a fund's net asset value.

Contributing Writer
Igor Greenwald is chief investment strategist of MLP Profits and managing editor of The Energy Strategist, both owned by Investing Daily. He also serves as an investment analyst at Investing Daily's Personal Finance newsletter and contributes to a blog at Forbes.com. A former financial columnist, newspaper editor, foreign correspondent and online producer, he lives in Massachusetts.