Dividend Funds - FEQTX and FSDIX

#1

Hi Jeremy! I’m looking at adding one of two funds to mine and my wife’s portfolio and wanted to pick your brain on high yield dividend funds. Currently, we both have accounts with Fidelity and invest in nothing but low fee index funds. I’m interested in investing an additional $200 / month in either FEQTX (fidelity equity dividend income fund) or FSDIX (fidelity strategic dividend & income fund). I’m aware the cost is a little more than the Fidelity index funds and I’m wondering if it’s worth investing this additional money in either of these funds or should I add that money to funds that we are already in.

Thanks,
Justin Nagel

#2

Disregard. I used the search option and read a few of your prior post. I suppose I will stay the course and not chase dividends. Later tonight, I will be listening to your podcast on this issue.

Thanks!
Justin

1 Like
#3

Hi @Justin_Nagel, you might find this post interesting!

Here is a quote from that link from @Jeremy…

Thank you! I don’t chase dividends. A few brief reasons why:
Dividends are already built into the price of the stock
Many great growth companies don’t provide dividends (Amazon, Google, Netflix, Berkshire, Chipotle, etc, etc)
Owning just dividend stocks is likely to increase your volatility but not your expected return
Index funds already own all the dividend paying stocks (plus all the great growth stocks as well) and pay out those dividends to you!

Hope this info can help out!

3 Likes
#4

Sorry, I didn’t see this post before my reply! Best of luck!!