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Income-Producing Fidelity Fund Picks®

Fidelity offers a wide range of mutual fund products that can help you generate income. Find funds in Fidelity Fund Picks® that pay monthly or quarterly dividends.

Types of dividend-producing mutual funds

Investment grade taxable bond funds

These funds are typically composed of investment grade bonds issued by governments and corporations or secured by assets such as home mortgages. All fund yields are subject to taxes at the local, state, or federal level, and in some cases, a combination of all these.

Research taxable bond funds in Fidelity Fund Picks.
Municipal bond funds

These funds invest in bonds issued by state governments and municipalities. While yields may be somewhat lower in comparison to other funds, all yields are typically free from federal income taxes.

Research municipal bond funds in Fidelity Fund Picks.
High yield bond funds

These funds invest primarily in lower credit quality securities, including convertible securities. While these funds have the potential to provide high income and total returns, they are riskier and more volatile than their investment grade counterparts.

Research high yield bond funds in Fidelity Fund Picks.
Equity income funds

These funds invest in stocks that pay high dividends. This strategy, known as equity income investing, can be an attractive alternative to bond investing as it seeks to offer greater protection against inflation as well as potential for capital appreciation.

Research equity income funds in Fidelity Fund Picks.*

Asset allocation funds

These funds offer exposure to a variety of asset types. This strategy can provide diversification and seeks to reduce the impact of market volatility, and provide a source of income as well as an opportunity for capital appreciation.

Research asset allocation funds in Fidelity Fund Picks.*

International and global bond funds

These funds invest in securities issued by companies from around the world, including those based in emerging markets. The main distinction between global and international bond funds is that the former invests in U.S. securities whereas as international bond funds do not.

Research international and global bond funds in Fidelity Fund Picks.*

Emerging market bond funds

These funds invest primarily in bonds issued by countries with smaller, less developed economies, or by corporations headquartered in developing countries. While these types of bonds generally represent higher risk than those from developed nations, the risk profile of each fund will vary according to the credit quality of the individual bonds held by that fund.

Research emerging market bond funds in Fidelity Fund Picks.*

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
*Automatically prefills an additional screen to the FundPicks selection criteria. Results are limited to FundPicks and funds with an SEC yield greater than 1%.
SEC yield: A standard yield calculation developed by the Securities and Exchange Commission for bond funds. The yield is calculated by dividing the net investment income per share earned during the 30-day period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the 30-day period, after the deduction of the fund's expenses. It is sometimes referred to as "SEC 30-Day Yield" or "standardized yield".
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
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. High yield/non-investment grade bonds involve greater price volatility and risk of default than investment grade bonds. The securities of smaller, less well-known companies can be more volatile than those of larger companies.
Growth stocks can perform differently from the market as a whole and other types of stocks and can be more volatile than other types of stocks.
Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time.
Diversification and asset allocation do not ensure a profit or guarantee against loss.
Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets.
Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.