Low risk, high-yield dividend fund? Buying stocks just for yield doesn’t make sense. In a rising rate environment, a lot of high dividend mutual funds own a lot of low growth businesses that are interest rate sensitive, that will do poorly if interest rates keep going up. He would not buy one. If someone wants income, they should own fixed income and buy a high yield Bond fund, where you are getting interest income, but those bonds will have maturity dates, and you will be less susceptible to rising interest rates.