The 4 Best Fidelity Funds to Buy for the Income

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  • 4 best Fidelity funds that are income-oriented
  • Fidelity Equity Dividend Income Fund (FEQTX): Investing in large-cap value stocks.
  • Fidelity Equity-Income Fund (FEQIX): Investing at least 80% of assets in equity securities, both domestic and foreign issuers.
  • Fidelity Growth & Income Portfolio (FGRIX): Investing in either growth stocks or value stocks or both.
  • Fidelity Dividend Growth Fund (FDGFX): Investing primarily in companies that currently pay, or have a historical record of paying dividends, both growth and value stocks.
best Fidelity funds for income - The 4 Best Fidelity Funds to Buy for the Income

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Fidelity offers a plethora of funds that can meet almost all the needs of investors today. Whether you want to invest in different regions and sectors searching for investment opportunities, you want to invest in equities, prefer small-cap or large-cap stocks, focus on value or growth, or in a balanced portfolio that invests in both growth and value equities the options are almost endless.

You can also choose funds that invest in bonds and determine the level of risk you are comfortable with. This article is about the best Fidelity funds to buy for income generation.

Fidelity’s best funds for income can help you achieve your long-term and short-term goals, build passive income and capital appreciation either for your retirement or to create a quick and steady income to cover your personal needs. Here are the best four Fidelity funds for income to consider.

FEQTX Fidelity Equity Dividend Income Fund $28.33
FEQIX Fidelity Equity-Income Fund $67.82
FGRIX Fidelity Growth & Income Portfolio $50.79
FDGFX Fidelity Dividend Growth Fund $33.65

Fidelity Equity Dividend Income Fund (FEQTX)

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Fidelity Equity Dividend Income Fund (FEQTX) is seeking a yield that is higher than the composite yield on the securities comprising the Standard & Poor’s 500 Index. It is a fund that is targeting reasonable income and at the same time capital appreciation too.

The find is investing at least 80% of assets in equities, primarily in income-producing equity securities that pay current dividends and show potential for capital appreciation, with a focus on large-cap value stocks. Some of the top 10 holdings include Bristol-Myers Squibb (NYSE:BMY), Verizon Communications (NYSE:VZ), Unilever (NYSE:UL), and Johnson & Johnson (NYSE:JNJ).

The 30-day yield as of April 30, 2022, is 2.11%. The expense ratio, gross and net is 0.58%, and the turnover rate is 47%. The fund inception date is August 21, 1990, and the 1-year, 3-years, and 5-years returns are +5.70%, +14.08%, and 9.98% respectively.

Morningstar has awarded this fund 3 stars out of 5 stars for its risk-adjusted performance.

Fidelity Equity-Income Fund (FEQIX)

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Fidelity Equity-Income Fund (FEQIX) is a fund that is normally investing at least 80% of assets in equities, income-producing equity securities, focusing on large-cap value stocks.

Other types of investments include types of equities and debt securities, including lower-quality debt securities. The investments can be in both domestic and foreign issuers.

The fund is seeking like Fidelity Equity Dividend Income Fund (FEQTX), a yield that will be better than the yield on the securities comprising the S&P 500 Index, and capital appreciation. Some of the top 10 holdings include JPMorgan Chase (NYSE:JPM), UnitedHealth Group (NYSE:UNH), Bank of America (NYSE:BAC), and Exxon Mobil (NYSE:XOM).

The fund inception date is May 16, 1996. The expense ratio, gross and net is 0.57% and the turnover rate is 27%. The 30-day yield is 1.55%.

The average annual returns for 1-year, 3-years and 5-yearsd are +12.86%, +14.46% and +11.10% respectively.

Morningstar has awarded this fund 4 stars out of 5 stars.

Fidelity Growth & Income Portfolio (FGRIX)

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Fidelity Growth & Income Portfolio (FGRIX) is seeking not reasonable income but a high total return because of current income and capital appreciation. The investments are in stocks that are paying dividends. It can either be growth or value stocks or both, and can include lower-quality debt securities and stocks that do not pay dividends but have the potential for capital appreciation.

Some of the top 10 holdings include General Electric (NYSE:GE), Wells Fargo (NYSE:WFC), Apple (NASDAQ:AAPL), and Altria Group (NYSE:MO).

The inception date of the fund is Dec. 30, 1985. The expense ratio, gross and net is 0.59% and the 30-day yield is 1.42%. The average annual returns for the 1-year, 3-years and 5-years are +12.56%, +16.4% and +12.81% respectively.

Morningstar has awarded this fund 5 stars out of 5 stars for its risk-adjusted performance.

Fidelity Dividend Growth Fund (FDGFX)

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Fidelity Dividend Growth Fund (FDGFX) is seeking capital appreciation by investing at least 80% of assets in equities. The focus is on investing in companies that currently pay, or have a historical record of paying, dividends, and these stocks can be either growth, value, or both of them.

Some of the top 10 holdings include Visa (NYSE:V), Verizon Communications (NYSE:VZ) and Dollar General (NYSE:DG).

The fund inception date is April 27, 1993. The expense ratio, gross and net is 0.49%, and the annual average returns for the 1-year, 3-years, and 5-years are 0.0%, +12.41%, and +9.82% respectively. The turnover rate is 56%.

Morningstar has awarded this fund 3 stars out of 5 stars based on its risk-adjusted performance.

On the date of publication, Stavros Georgiadis, CFA  did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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