Top 3 Fidelity Dividend Funds

A complete understanding of dividend funds holds the key to maximizing your earnings from your already-versatile portfolio. These low-risk dividend-oriented funds are increasingly becoming popular with most Fidelity investors.

Therefore, if you’re planning to improve your portfolio’s earnings, consider having a high-yield Fidelity dividend fund. In this post, you’ll learn everything about high-performing, top-paying Fidelity funds to bolster your profits.

The 3 Best Fidelity Funds to Gain High Yields

We’ve chosen these top Fidelity funds because of their exceptional yields over time. Additionally, we’ve considered their top holdings of large-cap stocks, which are the root source of its trending performance. Furthermore, these stocks help analysts predict their anticipated course in the future while looking at their previous 30-Day SEC yield.

1. Fidelity Equity Dividend Income Fund (FEQTX)

Most financial advisers and professionals find the Fidelity Equity Dividend Income Fund an average performer relative to other high-yield dividend funds in the market. However, among Fidelity’s income funds, it’s one of the highest-performing. Fidelity dividend income focuses on large-cap US stocks.

  • Growth Trend

The 30-day SEC yield for FEQTX is at 2.95%, with an expense ratio of 0.60%. Additionally, it has reached an impressive high of $25,546 per stock dividend yield by the end of December 2019.

Top Holdings Include:

  • Chevron Corporation (CVX)
  • Wells Fargo (WFC)
  • Johnson & Johnson (JNJ)

2. Fidelity Strategic Dividend & Income Fund (FSDIX)

Performance-wise, investment advisers find Fidelity Strategic Dividend & Income Fund (FSDIX) as a top fund because it provides reasonable income. It has a reliable guarantee to investor incomes thanks to its neutral mix of assets, including stocks, securities, real estate investment trusts, and other preferred stocks. Because its focus is the strategy, investors can trust fund managers to prioritize stability and resilience over high dividend payouts.

  • Growth Trend

FSDIX has a 30-day SEC yield of 2.51%, accompanied by an expense ratio of 0.71%. It peaked at $20,076 on August 31, 2020, and continues to have nominal increases across the board.

Top Holdings

  • McDonald’s Holdings (MCD)
  • Bristol-Myers Squibb Company (BMY)
  • AT&T (T)
  • Verizon Communications Inc (VZ)

3. Fidelity Growth & Income Portfolio(FGRIX)

Focusing on creating exceptional income for its dividend investors, Fidelity Growth & Income Portfolio might not look like it consists of top-holdings. However, its average performance is enough to pay its investors a satisfying sum.

  • Growth Trend

FGRIX’s previous 30-day SEC yield’s performance is a humble 2.03% with a relatively low expense ratio of 0.61%. On August 31, 2020, the fund ticker has reached an astounding high of $29,125 per stock dividend.

Top Holdings Include:

  • General Electric (GE)
  • Microsoft (MSFT)
  • Exxon Mobil (XOM)

4. Fidelity Equity-Income Fund (FEQIX)

FEQIX focuses on achieving sufficient income in all possible conditions. While it has capital appreciation as a secondary objective, Fidelity Equity-Income Fund focuses on equity investments making up 80% of its portfolio. Additionally, it uses equity securities, which pay huge dividends thanks to its ventures with large-cap stocks.

  • Growth Trend

FEQIX has a nominal 1.94% 30-day SEC yield and a next expense ratio of 0.60%, which is more than viable for a stable dividend fund. On December 31, 2020, the fund reached great heights at $25,382 fund value per stock dividend

Top Holdings

  • Johnson & Johnson (JNJ)
  • JP Morgan & Chase & CO (JPM)
  • Disney (Walt) Co (DIS)

Why Should You Invest in Dividend Funds?

It goes without saying: wisely investing helps bolster your current income. Dividend funds are attractive because the ownership of large-cap dividend stocks with regular payouts gives you additional money for your savings or other expenses. While they’re much more expensive than the usual holding stock, their performance can speak for itself.

Anyone who starts investing early in the top dividend-paying stocks can retire comfortably with high-yield profits. For example, the Fidelity strategic dividend and income will suit them greatly because of its large-cap stocks paying exceptional dividends near their guaranteed figures.

Finding The Best Dividend Funds Will Always Give You The Best Results

Dividend funds can pay you regularly or on-demand. Companies have no obligation to pay investors any dividends, but these monthly payouts serve as an incentive and additional funding to encourage investors to keep supporting them. Fidelity offers the best dividend funds that are easily accessible with minimal investment.

Like stock market investing, it pays to know about each fund’s earning strategy. For example, FEQIX focuses on having a solid 80% equity leading to high-value “large-cap” stock investments. This strategy effectively works during bull market runs, but it can be an enormous bane to investors with minimal safety nets in bonds and diversified assets when bear season arrives.

Additionally, solely depending on dividends as your main income source can be a problematic investment. Dividend fund minimum shares have higher-than-average costs if you compare it to the stock or secondary market. You’ll be taking an enormous financial leap of fate if you don’t diversify your portfolio.

Bottom Line

The best way to get the best results with dividend funds is to balance your portfolio. Copy existing portfolios including enormous parts as dividends. Then, compare and contrast their adaptability with others. In doing so, you can create a portfolio excellently capable of handling any situation and maximizing your dividend earnings.

If you’d like to know more about dividend investments and the best investment advice, you can always count on Investoralist’s rich content and educational material for new investors. Check out our top-consumed content today!