Searching for High Dividend Stocks

There are certain mutual funds out there that emphasis high dividend stocks. One such fund, as written about at Forbes.com , is the Ivy Dividend Income fund. In this article, the manager of the fund talks about his approach to looking for dividend growth companies as opposed to just high dividend stocks.

I focus on dividend growth, which is more important than the current dividend yield. Dividends are a long-term commitment from management. Companies that increase dividends every year are showing me that they have confidence in their business plan.

He also makes some interesting comments about the payout ratios for high dividend stocks. Be sure to have a look at the article.