NewsBite

Four ways to find diversified dividends

Income-specific managed funds can offer less risk than owning individual shares for yield.

Income investors often buy stocks directly for fully franked yield. But that strategy has individual company risk, particularly for investors with low portfolio diversification.

A better approach is using unlisted or listed management funds that target yield. The benefit is professional funds management and diversification through a portfolio of securities. The main downside is fees, although that can be reduced through low-cost exchange-traded funds (ETFs).

Loading...
Tony Featherstone writes on Personal Finance specialising in Superannuation & SMSFs, Specialist Investments. Email Tony at tony@featherstone.com.au

Latest In Personal finance

Fetching latest articles

Most Viewed In Wealth

    Original URL: https://www.afr.com/wealth/personal-finance/four-ways-to-find-diversified-dividends-20210901-p58nsy