How Important Is the Dividend History of a Mutual Fund in an Organization?


Quick Answer

While yield is important, investors can outperform a market just by investing in a company with a history of high and consistent dividend growth, notes CNN Money. Investors must look at the dividend history to judge for themselves whether the current dividend yield is sustainable.

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Full Answer

An increase in dividend yield is not always a positive thing, according to Investopedia. While good for investors in the short term, companies sometimes increase yield beyond what it can reliably disburse every year. Funds that have a history of giving steady dividends over a period of many years are very likely to continue doing so in the future.

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