Dividend Paying Mutual Funds: Vanguard vs. Fidelity

Dividend Paying Mutual Funds

Dividend paying mutual funds are very popular with investors, and this has always been the case. Which fund family offers better dividends though, Vanguard or Fidelity? Both of these mutual fund companies have an excellent reputation and have seen great results with many of the funds offered, and this is true in the dividend sector as well. Dividend paying mutual funds invest in companies whose stock typically pays out dividends, and often these dividends are reinvested back into your mutual fund account.

Vanguard offers foreign bond funds and other mutual fund types, but one that is extremely popular because of the dividends and performance is the Vanguard Dividend Appreciation ETF, symbol VIG. This fund follows the Dividend Achievers Select Index, which is a benchmark that strives for the best dividends and only chooses quality stock. The index is market cap weighted, and the companies included have seen their dividends rise steadily over the last decade. This is considered one of the best dividend paying mutual funds possible. Names like Coca Cola, McDonalds, IBM, and many others are included in this fund portfolio.

Buying mutual funds from Fidelity with the goal of steady dividends can offer a number of different choices. One of the best dividend paying mutual funds offered by this company is the Fidelity Dividend Growth Fund, symbol FDGFX. This fund includes globally recognized companies like Proctor & Gamble, Apple, Citigroup, General Electric, and many others. The performance and dividends the fund has shown in the past make it one of the best international mutual funds for dividends.

The mutual funds seeking dividends from both Fidelity and Vanguard offer an excellent investment opportunity for many investors, but each one is different and one company may be a better choice than the other for some. Research each option carefully, considering your investment goals and strategies, and then determine which specific mutual fund is the best choice in your unique situation.