Dividend Funds Put Money in Your Pocket

Blue chip investors may prefer Vanguard Dividend Appreciation(VDAIX Quote). The fund tracks Mergent's Dividend Achievers Select Index, a benchmark of companies that have increased their dividends for the past 10 consecutive years. Businesses that clear the hurdle tend to have high profits and strong balance sheets. The portfolio features such powerhouses as Johnson & Johnson(JNJ Quote) and Procter & Gamble(PG Quote). Troubled financial companies don't make the cut. By focusing on companies that raise dividends in good years and bad, the Vanguard fund aims to deliver capital gains and a reliable stream of income.