Chuck Jaffe: This mutual fund could be flashing a warning sign for dividend-rich stocks

Are stock mutual funds that focus on dividend-growth strategies about to hit a rough patch? The closing of this group’s most popular fund suggests that may be the case.

Vanguard Group recently shuttered its Dividend Growth Fund VDIGX, +1.05% to new investors, in order, it said, to “control asset growth.” The fund — which is still accepting money from existing shareholders — has $30 billion in assets, making it one of the 20-largest actively managed U.S. equity funds, according to investment researcher Morningstar Inc.

Dividend-growth stocks have been a hot area for good reason. Investors have been searching for yield from stocks to replace the income they can no longer get from bonds.

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