Morningstar lists over 150 equity mutual funds and ETFs that focus specifically on companies that pay dividends. But why should advisors consider a dividend-oriented fund rather than a traditional equity income or growth-and-income fund?

Because some of those equity-income and growth-and-income funds may hold preferred stocks, convertibles, and sometimes even bonds, says Jeff Layman, chief investment officer and principal at Springfield, Mo.-based BKD Wealth Advisors.

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