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Mutual Funds and Mutual Fund Investing - Fidelity Investments

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Fidelity^® Equity-Income Strategy

This separately managed account (SMA) seeks to provide long-term growth and dividend income, with potentially less volatility than the U.S. stock market.

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Potential for long-term growth and dividend income with potentially less volatility than the U.S. stock market

In-depth research that leverages our experience, discussions with corporate leaders, and proprietary tools

Active investment process emphasizing diversification, strategic valuation, and potential for growth

Summary
FAQs

Summary

Types of investments

Primarily higher-quality dividend-paying equity stocks¹ within the S&P 500^® Index

Investment strategy

Focuses on higher-quality dividend-paying stocks that have the potential to sustain and grow dividends over time

Minimum investment

$100,000²

Annual Advisory Fee

0.30%–0.90%³

(varies based on total assets invested)

More info

		Meet the investment team

		See how dividend-paying stocks have consistently delivered income over time

		The impact of dividends on returns and volatility

FAQs: Fidelity^® Equity Income Strategy

How can this strategy help me meet my goals?

This strategy is generally focused on higher‐quality dividend‐paying¹ stocks that seek to deliver long‐term growth of capital and dividend income greater than the S&P 500 Index, with the potential for less volatility than the U.S. stock market.
Who manages my money?

Fidelity Personal and Workplace Advisors LLC (FPWA), has engaged Strategic Advisers LLC, a registered investment adviser and a Fidelity Investments company, to provide the day-to-day discretionary portfolio management of Fidelity Equity-Income Strategy accounts, including investment selection and trade execution, subject to FPWA's oversight.
What kind of investments can I expect in my account?

This strategy will generally contain higher-quality, dividend-paying, U.S.-oriented equity stocks within the S&P 500 Index.¹
How are the investments chosen for my account?

The investments in this strategy are selected based on their potential to provide growth while providing diversification.
Can I choose my own investments?

Our investment professionals will use their experience, thorough research and due diligence to select investments for your account. You will have some of the best investment minds in the business overseeing and monitoring your investments throughout the year to help ensure you're on track to meet your goals.
Can I add funds to my account?

Yes, you can add funds at any time.
Can I withdraw funds from my account?

Yes, there are several ways to access your funds, including scheduled withdrawals.
How much do I need to open an account?

The minimum funding amount is $100,000.² Accounts can be funded with a check, bank wire, an exchange purchase from an existing Fidelity account, or a transfer of eligible assets from an account at another institution.
How much does it cost?

Gross advisory fees range from 0.30% to 0.90% based on account balance.³

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1. Higher-quality dividend-paying stocks are understood within the industry to mean those issued by large, stable companies that generally invest in profitable projects, manage their expenses effectively, and grow their cash flow — some of the hallmarks of companies that are able to sustain and grow dividends over time.

2. Fidelity^® Strategic Disciplines clients must generally qualify for support from a dedicated Fidelity advisor, which is based on a variety of factors (for example, a client with at least $250,000 invested in eligible Fidelity account(s) would typically qualify). For details, review the Program Fundamentals available online or through a representative.

3. The advisory fee does not cover charges resulting from trades effected with or through broker-dealers other than Fidelity Investments affiliates, mark-ups or mark-downs by broker-dealers, transfer taxes, exchange fees, regulatory fees, odd-lot differentials, handling charges, electronic fund and wire transfer fees, or any other charges imposed by law or otherwise applicable to your account. You will also incur underlying expenses associated with the investment vehicles selected.

S&P 500 is a registered service mark of Standard & Poor's Financial Services LLC. It is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. Indexes are unmanaged. It is not possible to invest directly in an index. Securities indices are not subject to fees and expenses typically associated with managed accounts.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Past performance is no guarantee of future results.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.

Fidelity^® Strategic Disciplines provides nondiscretionary financial planning and discretionary investment management for a fee. Fidelity^® Strategic Disciplines includes the Fidelity^® Equity-Income Strategy. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FBS, and NFS are Fidelity Investments companies.

FPWA has engaged Strategic Advisers LLC, a registered investment adviser and a Fidelity Investments company, to provide the day-to-day discretionary portfolio management of Fidelity Equity Income Strategy accounts, including investment selection and trade execution, subject to FPWA’s oversight.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

727609.12.0

Dividend-Paying Stocks Have Consistently Delivered Income Over Time

As shown below, dividends have produced approximately 40% of the S&P's total return over time. The remainder has come from price appreciation (the increase in a stock's value). This powerful combination of income and growth may help contribute to the potential for returns.

Source: Fidelity Investments and Morningstar, as of 12/31/20.

†2020s data is from 1/1/20 to 12/31/20.

Past performance and dividend rates are historical and do not guarantee future results. The index performance includes the reinvestment of dividends and interest income. An investment cannot be made in an index. Securities indices are not subject to fees and expenses typically associated with managed accounts. This chart is for illustrative purposes only and is not intended to represent the actual or future performance of any investment option or strategy. Keep in mind that investing, including investing in dividend paying stocks, involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

For each decade, the total return for the S&P 500 was calculated and then converted into an average annual return number. The total return for each decade was also decomposed into its two constituent parts: price appreciation and dividend income. The bars for each decade represent annualized total return, annualized return from price appreciation only, and annualized return from dividends (which are assumed to be reinvested in the index).

S&P 500 is a registered service mark of Standard & Poor's Financial Services LLC. It is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.

The Impact of Dividends on Returns and Volatility

Companies that have paid stable dividends are often well-run, high-quality businesses. As a result, these high-dividend paying stocks* have a history of competitive returns. Even in down markets, income from dividends may contribute to returns. High-dividend-paying stocks have also experienced less extreme price fluctuations† compared to stocks that did not pay dividends.

High-Dividend-Paying Stocks Had Attractive Returns and Lower Volatility (1994–2021)^†

Source: Fidelity Investments and FactSet, as of 12/31/2021. Analysis shows equal-weighted geometric average annual total return and standard deviation of nondividend- paying and high-dividend-paying stocks in the S&P 500^® Index from 11/30/1994 to 12/31/2021, rebalanced monthly. Note: This strategy will not focus exclusively on high-dividend-paying stocks and will include other stocks. Returns for the non-dividend-paying stocks, and high-dividend-paying stocks can deviate and have historically deviated significantly from the average returns over the period displayed above.

* High-dividend-paying stocks represent the top third of S&P 500^® stocks by dividend yield.

† Volatility as measured by standard deviation. Standard deviation is a measure of the dispersion of a set of values from its mean. It is an annualized figure that measures how much a return varies over an extended period of time. The more variable the returns, the larger the standard deviation. A higher standard deviation indicates a wider dispersion of past returns and thus greater historical volatility. Standard deviation indicates the volatility of the index return over time, not the actual performance of the index.

Past performance is no guarantee of future results. The index performance includes the reinvestment of dividends and interest income. An investment cannot be made in an index. Securities indices are not subject to fees and expenses typically associated with managed accounts. This chart is for illustrative purposes only and is not intended to represent the actual or future performance of any investment option or strategy.

Mutual Funds and Mutual Fund Investing - Fidelity Investments

Fidelity® Equity-Income Strategy

Summary

FAQs

Summary

$100,0002

0.30%–0.90%3

FAQs

FAQs: Fidelity® Equity Income Strategy

Let's talk about how we can work together

Tell us how you want to work with us

Tell us how you want to work with us

Dividend-Paying Stocks Have Consistently Delivered Income Over Time

The Impact of Dividends on Returns and Volatility

High-Dividend-Paying Stocks Had Attractive Returns and Lower Volatility (1994–2021)†

Choose how you want to get started

Fidelity^® Equity-Income Strategy

$100,000²

0.30%–0.90%³

FAQs: Fidelity^® Equity Income Strategy

High-Dividend-Paying Stocks Had Attractive Returns and Lower Volatility (1994–2021)^†