Fund Managers Like These Dividend Stocks: Should You?

Volatility in the stock market might send some investors scurrying for cover. But those who favor dividends are probably less likely to panic. If selected carefully, dividend stocks can offer the best of both worlds: stock-price performance and a steady payout. So dividend funds can be key components of long-term mutual fund investing.Here are some of the top stocks — by those two measures — held by leading mutual funds, based on their 10-year annualized return.

SunAmerica Focused Dividend Strategy led with a 11.18% average annual return for the period. The fund has $8.8 billion in assets under management. Many of its top holdings are classic dividend plays such as McDonald's (NYSE:MCD), General Electric (NYSE:GE) and Pfizer (NYSE:PFE). Another big holding, AT&T (NYSE:T), tops IBD's Dividend Leaders list with a 5.9% annualized payout. But the stock, down 1% this year, has been a laggard. Lockheed Martin (NYSE:LMT) offers a dividend yield of 3.3% on an annual basis. Its top holding based on percentage of assets was Medtronic (NYSE:MDT).

Source: Investors.com

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