When a company makes a profit, two of the ways earnings can be used are to: reinvest back into the company or pay shareholders a dividend. A dividend-focused investment strategy generally targets higher dividend yielding companies that are expected to sustain and grow their dividends.
For long-term investors, dividends can be a powerful tool. Dividends add income to investor portfolios, and by reinvesting these dividends, investors can also capitalize on the power of compounding.
At Fidelity, our dividend factor funds seek to track the performance of tailor made indices that are actively designed by Fidelity Management and Research Company.
Fidelity Canada High Dividend Index ETFs and Mutual Funds
- Single-factor exposure to high-quality dividend-paying companies.
- An outcome-oriented approach that seeks to deliver monthly income.
- An efficient complement to a well-diversified portfolio.
Fidelity Dividend Factor ETFs:
- Fidelity Canadian High Dividend Index ETF
- Fidelity U.S. Dividend for Rising Rates Index ETF
- Fidelity U.S. Dividend for Rising Rates Currency Neutral Index ETF
- Fidelity U.S. High Dividend Index ETF
- Fidelity U.S. High Dividend Currency Neutral Index ETF
- Fidelity International High Dividend Index ETF
The Fidelity Dividend Factor ETFs are also available as mutual funds. The mutual funds invest in the underlying ETFs:
- Fidelity Canadian High Dividend Index ETF Fund
- Fidelity U.S. Dividend for Rising Rates Index ETF Fund
- Fidelity U.S. Dividend for Rising Rates Currency Neutral Index ETF Fund
- Fidelity U.S. High Dividend Index ETF Fund
- Fidelity U.S. High Dividend Currency Neutral Index ETF Fund
- Fidelity International High Dividend Index ETF Fund
- Fidelity Tactical Global Dividend ETF Fund* – this fund is a single-ticket global dividend solution with a tactical asset allocation overlay designed to generate income in various market environments.
*This is not an index mutual fund and may invest in underlying funds that are not managed by Fidelity. This fund may also invest, to a lesser extent, in underlying funds that do not invest in global dividend-paying equity securities.
Dividend factor ETFs infographic
Learn how Fidelity dividend factor ETFs work