3 Reasons Why You Should Avoid Dividend Funds

For some investors, the idea of sticking it out with their bonds and enduring what can be years of devalued market prices (assuming rates increase after all and the bonds cannot be held until maturity), the possibility of investing in dividend paying securities has been a convenient alternative. However, dividend paying securities and dividend funds in particular might not make much sense at this stage in the game. Here are three reasons why many dividend funds might be a bad idea for the balance of the year: