Dividend funds

[onway]

What is the difference between dividend funds and Quinn Life Freeway investments??

 

[CCOVICH]

Dividend funds invest in shares of companies that pay 'high' dividends (sometimes called high yield funds).

Quinn Life don't offer a high yield fund as such, although some of the funds may invest in companies that pay high dividends, but this is only by chance, as the main objective of Quinn investments is to track an index, not invest in specific companies.

 

[Humpback]

In case it's of interest, there's a FTSE Dividends Plus ETF that concentrates on buying only UK FTSE stocks that pay out high dividends. Is that the kind of thing you're querying?

 

[onway]

I have some money in Quinn Freeway and only heard of dividend funds recently - was wondering if I should put some money into them or more into Freeway?????

 

[ClubMan]

Impossible to say without more details of your overall situation, finances, plans etc. Why are you suddenly thinking that dividend funds are for you?

 

[onway]

Thought from what I read that there would be greater returns from the dividend funds than the Freeway.

 

[CCOVICH]

Thought from what I read that there would be greater returns from the dividend funds than the Freeway.

No, that is not true. Greater returns in the sense that dividends on the shares received by the fund will more than likely be higher than a 'normal' fund, but that is all really. Overall fund performance is determined by many other factors.