Dividend-Focused Portfolio Building: A Focus on Fidelity Offerings
Constructing a Supplemental Dividend Portfolio
For investors seeking to supplement their income with dividends, Fidelity Investments offers an array of mutual funds and exchange-traded funds (ETFs) designed to meet specific investment objectives. This article will delve into Fidelity's offerings, providing insights into building a dividend-focused portfolio that aligns with your financial goals.
Fidelity's Dividend ETFs
Fidelity offers several dividend ETFs that provide diversified exposure to companies with a history of paying dividends. Some notable options include:
- Vanguard International High Dividend Yield ETF (VYMI): This ETF invests in international companies with high dividend yields.
- Fidelity Dividend ETF for Rising Rates (FDRR): This ETF focuses on large-cap companies that are expected to benefit from a rising interest rate environment.
Fidelity's Mutual Funds with Dividend Focus
In addition to ETFs, Fidelity also offers mutual funds with a focus on dividend-paying companies. Here are a few examples:
- Fidelity Dividend ETF (FDVV): This fund invests in large-cap companies with consistent dividend records.
- Schwab Dividend ETF (SCHD): This ETF tracks the Dow Jones U.S. Dividend 100 Index, which includes companies with high dividend yields and long dividend payment histories.
Conclusion
Building a dividend-focused portfolio can provide investors with a steady stream of income and potentially enhance overall returns. By carefully selecting Fidelity mutual funds and ETFs that align with your investment objectives, you can create a portfolio that supplements your retirement savings or provides additional income during your working years. Remember to conduct thorough research, consider your risk tolerance, and monitor your portfolio regularly to ensure it remains aligned with your financial goals.
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