I've been trying to do some investment due diligence. I'm looking at funds for a family member that needs some dividend income. Some of the high dividend funds that were recommended to me seem to have done pretty poorly when compared to the S&P. (i looked them up on yahoo finance and google finance). As I was going through them, it occurred to me that the amount the value of the fund was below the S&P was constant with the dividend it paid out. I suppose this makes sense, companies pay dividends which make the stock worth less? My question is two fold.
Is there any place where I can see a true graphic comparison of a funds value + dividend as compared to the major indexes?
If dividends make the value of a stock go down proportionally to what is paid out ( as compared to the market ), then what is the point of a dividend? would that not be the same a just selling a portion of the stock?