A few links and even in the newspaper (yeah, we still get that) discussed the importance of stocks that produce dividends.
Even in a down market, a stock that pays dividends can keep your portfolio strong.

Hmmm, I wonder if there are Mutual Fund dedicated to stocks paying dividends and sure enough there are.
VHDYX
VDAIX
VDIGX
VEIPX

When I checked their performance it really wasn't what I was expecting.
In fact, I wasn't impressed with their performance at all.

Granted, I am not the best in reading the performance info much more than looking at the 3 month, 1 year, 5 year charts.(Hey I like to look at pictures more than reading.)
There is a chance the Dividend types are tracked differently and maybe they need to be interpreted differently.

Since this would be part of the Rollover IRA, the dividends would automatically be reinvested.

Is having a Mutual Fund dedicated to dividend stocks a good additional to ones 401k portfolio?
If looking at the chart is wrong for Dividend type Mutual Funds, what is the proper way to interpret ones performance?

Look at RALCX

I did and guess I don't understand why this is such a good fund.
Checking the 10 year chart and its basically at the same price it was 10 years ago.
To me that is terrible unless there is some research I am missing which shows this is a good fund.

The expense ratio is high, very high.

I'll pass.

You are not looking at this correctly.

For dividend focused funds you expect to not see substantial growth in the fund value.  Instead of letting their value grow (by reinvesting earnings in to the companies) the underlying companies are paying earnings out to the investors in the form of dividends.
A company that is profitable can do two very different things with earnings:
1. They pay it to the investors in the form of dividends.
2. They keep it and reinvest in themselves, which makes them worth more driving their stock prices up.

With a dividend paying stock you see portfolio growth by taking the dividends and reinvesting, but the share price will remain relatively flat.

Does that help?

Yes, that actually makes sense.

I find the chart an easy method to quickly view the progress of a mutual fund, but with a fund like this what do you view that tells you what a good buy it is?

fund of funds

If you have dividend funds you'll get used to looking at total fund return instead of just price appreciation. My main page only shows how much a stock or fund has gone up price wise. I have to go and sort by total fund return.

Nice thing about dividend funds is they really compound; the more you buy, the more shares that get reinvested. It builds up really quickly.

Why a dividend mutual fund and not an ETF?

I like DVY but buy it when it is on sale. It is and ETF that holds the top 100 dividend paying stocks on the DOW.

ETF's have to be bought in whole share increments. When you are reinvesting the dividends money gets left on the table until there is enough to buy whole shares. I am not even sure if you can do an automatic reinvest with ETFS - I don't own any. I think with ETF's you have to manually buy more shares with your dividends once you have enough.  With a mutual fund every single cent of dividends goes right back into the fund instantly.

Nothing really wrong with ETF's but I think they are geared more towards traders. I buy and hold. Have had the same funds for many years and no plans on changing anytime soon. The dividends just keep reinvesting automatically for me. I also like the funds because I contribute a fixed amount every month and I get it all invested in the fund and don't have to worry about buying X shares or whatever.

2.1% expense?