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3 Large-Cap Dividend Mutual Funds to Buy as a Crisis Looms
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The looming crisis surrounding the debt ceiling is worrisome as it signifies the possibility of the U.S. Treasury being unable to fulfill its financial obligations. The amount of debt has reached a critical threshold point and the treasury will exhaust its available cash if the debt ceiling is not raised. Such an outcome would be detrimental as it could lead to missed payments and eventually cause severe repercussions for the U.S. economy and heightened market volatility.
Compounding the issue is the overall banking crisis, which casts doubts on the stability of financial institutions. Moreover, the Federal Reserve's probable rate hike in June adds to the uncertainties plaguing the market.
In these challenging times, large-cap dividend funds present a compelling investment option. Large-cap dividend funds offer distinct advantages during times of market turmoil. They focus on established companies with solid financial foundations, making them a stable investment option. Even when the markets are not performing well due to the debt ceiling crisis and the banking crisis, large-cap companies have the resilience to withstand economic downturns.
Additionally, large-cap dividend funds prioritize dividend payments, and offer consistent income streams irrespective of market conditions. Another advantage of investing in large-cap dividend funds is diversification. By holding a portfolio of stocks from various sectors and industries, these funds diversify the risk across different companies and reduce exposure to particular sectors that might be vulnerable to current challenges. It acts as a safety net and mitigates risk and promotes stability during unfavorable situations. It also provides the potential for long-term growth, and offers stability and income through dividend payments. This combination of a steady income and growth potential enhances overall investment returns.
Thus, from an investment standpoint, we have selected three large-cap dividend funds mutual funds, whichare expected to hedge your portfolio against any economic downturn and provide attractive returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
These mutual funds, by the way, boast a Zacks Mutual Fund Rank #1 (Strong Buy)or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio.
Integrity Dividend Harvest Fund (IDHIX - Free Report) invests most of its net assets in dividend-paying equity securities, which consist of common stock and preferred stock, of companies. IDHIX advisors choose to invest in equity securities that have consistently increased dividends.
Trey Welstad has been the lead manager of IDHIX since May 1, 2015. The fund’s primary holdings were Broadcom Inc. (6.7%), AbbVie Inc. (5.9%) and Verizon Communications (3.7%) as of Jan 31, 2023.
IDHIX’s dividend yield is 3.2%. IDHIX’s 3-year and 5-year returns are 13.9% and 9.6%, respectively. The annual expense ratio is 0.70% compared with the category average of 0.94%. IDHIX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Bridges Investment Fund, Inc. (BRGIX - Free Report) seeks to achieve long-term capital growth. BRGIX advisors choose to invest in a diversified portfolio of common stocks and convertible securities that have consistently increased dividends.
Edson L. Bridges has been manager of BRGIX since Apr 10, 1997. The fund's main holdings were Apple Inc. (10.4%), Mastercard (8.1%) and Microsoft Corp. (7.1%) as of Dec 31, 2022.
BRGIX’s dividend yield is 5.7%. BRGIX’s 3-year and 5-year returns are 14.1% and 11.7%, respectively. The annual expense ratio is 0.77% compared with the category average of 0.99%. BRGIX has a Zacks Mutual Fund Rank #1.
Shelton Equity Income Fund (EQTIX - Free Report) seeks to achieve a high level of income and capital appreciation by investing mainly in income-generating U.S. equity securities. EQTIX invests the majority of its total assets in common stocks.
Stephen C. Rogers has been the lead manager of EQTIX since Dec 30, 2003. The fund’s key holdings were Microsoft (2.6%), COSTCO WHOLESALE CORP (2.4%) and PROCTER & GAMBLE CO (2.4%) as of Nov 30, 2022.
EQTIX’s dividend yield is 7.5%. The EQTIX’s 3-year and 5-year annualized returns are 12.3% and 7.1%, respectively. The annual expense ratio of 0.72% is lower than the category average of 1.11%. EQTIX has a Zacks Mutual Fund Rank #1.
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3 Large-Cap Dividend Mutual Funds to Buy as a Crisis Looms
The looming crisis surrounding the debt ceiling is worrisome as it signifies the possibility of the U.S. Treasury being unable to fulfill its financial obligations. The amount of debt has reached a critical threshold point and the treasury will exhaust its available cash if the debt ceiling is not raised. Such an outcome would be detrimental as it could lead to missed payments and eventually cause severe repercussions for the U.S. economy and heightened market volatility.
Compounding the issue is the overall banking crisis, which casts doubts on the stability of financial institutions. Moreover, the Federal Reserve's probable rate hike in June adds to the uncertainties plaguing the market.
In these challenging times, large-cap dividend funds present a compelling investment option. Large-cap dividend funds offer distinct advantages during times of market turmoil. They focus on established companies with solid financial foundations, making them a stable investment option. Even when the markets are not performing well due to the debt ceiling crisis and the banking crisis, large-cap companies have the resilience to withstand economic downturns.
Additionally, large-cap dividend funds prioritize dividend payments, and offer consistent income streams irrespective of market conditions. Another advantage of investing in large-cap dividend funds is diversification. By holding a portfolio of stocks from various sectors and industries, these funds diversify the risk across different companies and reduce exposure to particular sectors that might be vulnerable to current challenges. It acts as a safety net and mitigates risk and promotes stability during unfavorable situations. It also provides the potential for long-term growth, and offers stability and income through dividend payments. This combination of a steady income and growth potential enhances overall investment returns.
Thus, from an investment standpoint, we have selected three large-cap dividend funds mutual funds, whichare expected to hedge your portfolio against any economic downturn and provide attractive returns. Mutual funds, in general, reduce transaction costs and diversify the portfolio without commission charges mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
These mutual funds, by the way, boast a Zacks Mutual Fund Rank #1 (Strong Buy)or 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000, and carry a low expense ratio.
Integrity Dividend Harvest Fund (IDHIX - Free Report) invests most of its net assets in dividend-paying equity securities, which consist of common stock and preferred stock, of companies. IDHIX advisors choose to invest in equity securities that have consistently increased dividends.
Trey Welstad has been the lead manager of IDHIX since May 1, 2015. The fund’s primary holdings were Broadcom Inc. (6.7%), AbbVie Inc. (5.9%) and Verizon Communications (3.7%) as of Jan 31, 2023.
IDHIX’s dividend yield is 3.2%. IDHIX’s 3-year and 5-year returns are 13.9% and 9.6%, respectively. The annual expense ratio is 0.70% compared with the category average of 0.94%. IDHIX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category and other 1 and 2 Ranked Mutual Funds, please click here.
Bridges Investment Fund, Inc. (BRGIX - Free Report) seeks to achieve long-term capital growth. BRGIX advisors choose to invest in a diversified portfolio of common stocks and convertible securities that have consistently increased dividends.
Edson L. Bridges has been manager of BRGIX since Apr 10, 1997. The fund's main holdings were Apple Inc. (10.4%), Mastercard (8.1%) and Microsoft Corp. (7.1%) as of Dec 31, 2022.
BRGIX’s dividend yield is 5.7%. BRGIX’s 3-year and 5-year returns are 14.1% and 11.7%, respectively. The annual expense ratio is 0.77% compared with the category average of 0.99%. BRGIX has a Zacks Mutual Fund Rank #1.
Shelton Equity Income Fund (EQTIX - Free Report) seeks to achieve a high level of income and capital appreciation by investing mainly in income-generating U.S. equity securities. EQTIX invests the majority of its total assets in common stocks.
Stephen C. Rogers has been the lead manager of EQTIX since Dec 30, 2003. The fund’s key holdings were Microsoft (2.6%), COSTCO WHOLESALE CORP (2.4%) and PROCTER & GAMBLE CO (2.4%) as of Nov 30, 2022.
EQTIX’s dividend yield is 7.5%. The EQTIX’s 3-year and 5-year annualized returns are 12.3% and 7.1%, respectively. The annual expense ratio of 0.72% is lower than the category average of 1.11%. EQTIX has a Zacks Mutual Fund Rank #1.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>