Schwab Launches Dividend Fund, Managed Account

Charles Schwab has launched a mutual fund and a managed account platform that will invest in dividend-paying stocks. The Schwab Dividend Equity Fund and the Schwab Personal Portfolios Dividend Equity platform will both invest in dividend-paying stocks that have been rated either an A or B by Schwab Equity Ratings. They are designed to take advantage of the Jobs and Growth Tax Relief Reconciliation Act of 2003 that reduces the maximum tax on dividends to 15%.

"It’s important that investors understand what this new legislation can mean for their long-term financial health and outlook," said Randy Merk, executive vice president and president of Charles Schwab Investment Management. "Lowering the tax rate on dividends will make stock ownership more meaningful than merely hoping the share price of a stock climbs higher."