Fidelity
Expenses: 0.78%*
Minimum Investment: $2,500*
Dividend Yield: 2.7%
Our final selection — the Fidelity Strategic Dividend & Income Fund (MUTF:FSDIX) — takes a few income themes and throws them into a mixing bowl.
Fidelity Strategic Dividend & Income Fund aims to invest about half its assets in dividend-paying equities, the vast majority of which are American. But it also targets a 20% exposure to preferred stocks, 15% to REITs and 15% to convertible securities (which can be convertible bonds or preferred shares that can be converted into common stock).
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The top holdings read like most blue-chip dividend funds, with stocks such as Microsoft, Verizon and Procter & Gamble Co. (NYSE:PG) claiming FSDIX’s heaviest weights. But the blend of REITs and other uncorrelated income-generating securities helps deliver a one-two punch of diversification and higher-than-average income.