April 1, 2025

IN THIS ISSUE: Real stock payouts, food cost cutters, and portfolio rebalancing tips. No foolin’.

GOOD START

Get 6 steps to financial freedom—it may be closer than you think.

THE HEADLINES

Back at you

What happened: Last year, S&P 500^® companies returned a record $942.5 billion to investors via buybacks, according to S&P Dow Jones Indices.¹ (Stock buyback = when a company repurchases shares from the open market or, in this case, directly from investors.) Another record amount, $629.6 billion, went to shareholders in dividends, or payouts of a portion of company profits.²

Here’s why: Surging stock prices in 2024 meant employee stock-based compensation climbed too, and some employers needed more stock to cover that. But generally, buybacks and dividend payouts are a good look—and could increase a stock’s price (though not always). Potential investors might want a slice of a company with extra cash for a buyback and to reward shareholders with a dividend (though some might prefer to invest in companies that put that cash toward innovation or growth instead).

What it means: If you sell your shares to a company offering buybacks, you may owe taxes on any capital gains (profits from selling the shares). If you hold onto your shares, you won’t be taxed. Some investors like dividend stocks as a way to earn passive income. (Psst … here are 13 ideas for earning passive income.) Heads up that dividends are also taxable income, and a company could stop paying dividends at any time.

• • •

Will power

What’s happening: Despite 83% of Americans recognizing a will’s importance, just 31% have one, according to the 2025 Estate Planning Report from Trust & Will, an online estate planner.³

Here’s why: Many people don’t think they’re wealthy enough to need a will, according to the report. Other top reasons for skipping estate planning: procrastinating and not knowing where to start.

What it means for you: Estate planning is for everyone—no matter your net worth. It ensures your assets go to the people and organizations you want and can help loved ones avoid the long, complicated probate process of distributing assets.

An easy first step: Set beneficiaries for your financial accounts—these designations override wills and could help asset transfers go more smoothly. (Here’s how to designate beneficiaries at Fidelity.) Next, try the free Fidelity Estate Planner^® online tool for Fidelity customers. It helps you collect and organize information. Or you could use this estate-planning checklist. Don’t want to DIY? Check if your employer offers an estate-planning benefit.

• • •

Supermarket steep

What’s happening: Nearly 90% of Americans are changing their grocery shopping habits—buying more generic brands, paying more attention to prices, and skipping impulse buys—according to a new LendingTree survey.⁴ Plus, 60% are dining out less to save money.

Here’s why: Food is eating up budgets. Prices are up about 24% since 2020, according to US Department of Agriculture data.⁵ And some chain restaurants have raised their prices as much as 42% on average in the last 5 years.⁶

What it means for you: Feeling squeezed? Knowing certain tricks can help you save at the grocery store. A few examples:

Order groceries for curbside pickup to avoid temptation at the store.
Use a rewards credit card that gets you points or cash back when dining out or buying groceries and then use them toward future purchases. Just be sure to pay your bill in full so you don’t get stuck with interest.
Compare per-ounce costs for the same food before you buy. A big box might not be as good of a deal as a smaller one and vice versa.

Learn 5 more ways to save at the grocery store.

TIPS FOR BUMPY MARKETS

WHAT’S THAT AGAIN?

Rebalancing

It’s like hitting the edit button on your investments. Rebalancing is the process of buying and selling investments to help keep your portfolio in line with your investment strategy.

It’s smart to do this regularly (think: at least once a year, but maybe once a quarter, depending on other factors)—even if your investing goals and plan haven’t changed. Why? As investments you hold grow or shrink in value, your portfolio’s concentration in different asset types might change. Over time this could shift your risk exposure or make your portfolio less diversified. Learn how to rebalance your portfolio in 4 simple steps.

HOW TO

Keep more of your money

Little costs you don’t even notice can add up to big drains on your budget. Here are common culprits to watch out for.

Plug these money leaks

TOOL SCHOOL

Today’s tool: Fidelity’s Get Invested (login required)

What it does: Helps you find investments that might make sense for you based on your goals, risk tolerance, and more.

How it works: If you have a Fidelity account, you can explore common investment types and see top-performing options within each one. For example, in just a few clicks you can get a curated list of index funds—which track a broad-market benchmark like the S&P 500—that have the lowest fees for investors and biggest historical returns.

Good to know: Already have a specific investment you’re looking to buy? Find it quickly here.

NEXT STEPS TO CONSIDER

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1. “S&P 500 Q4 2024 Buybacks Increase 7.4% and 2024 Expenditure Sets New Record by Increasing 18.5%,” S&P Global, March 19, 2025.

2. “S&P 500 Q4 2024 Buybacks Increase 7.4% and 2024 Expenditure Sets New Record by Increasing 18.5%,” S&P Global, March 19, 2025.

3. “Trust & Will 2025 Estate Planning Report,” Trust & Will, February 25, 2025.

4. Lauren Nicholson, “88% Say They’ve Changed Grocery Shopping Habits Due to Inflation—Here’s How,” LendingTree, February 24, 2025.

5. Victoria Davidenko and Megan Sweitzer, “US food prices rose by 23.6 percent from 2020 to 2024,” USDA Economic Research Service, February 14, 2025.

6. Josh Koebert, “Which Fast-Casual Prices Have Risen the Least in the Past Five Years [Data Study],” FinanceBuzz, March 25, 2025.

Investing involves risk, including risk of loss.

Past performance is no guarantee of future results.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially affect investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.

The S&P 500^® Index is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent US equity performance.

The third parties mentioned herein and Fidelity Investments are independent entities and are not legally affiliated.

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