Some high-yield dividend funds include ProShares S&P 500 Aristocrats ETF, Vanguard high-dividend yield index fund and SPDR Barclays capital international treasury bond ETF, advises U.S. News and World Report. These stocks pay dividends on earnings, allowing investors to have regular income from the investments.
Investors should research each fund, as some high-yielding stocks may not be able to sustain the high payments, advises Barron's.
Dividend-paying funds may be actively managed, such as BNY Mellon income stock M and Vanguard Wellington. Others are index funds, such as Hennessy gas utility index investor, and investments are made using predetermined criteria without exception, states The Street.
Investors should ensure that their goals are compatible with the goals of the fund, whether they be highest dividends or long-term appreciation, advises The Street.