Hoping your New Year is off to a great start — and thanks for reading!
One of the most dependable ways to grow passive income in your portfolio is through dividends — regular cash payments companies and funds make to shareholders simply for owning their shares. By focusing on dividend-paying stocks and dividend-yielding ETFs (including iShares funds) inside a Fidelity Investments account, you can start generating income consistently — even while you sleep.
📌 What Are Dividends & Why They Matter
Dividends are cash distributions a company or fund pays out from its profits or income to its shareholders. They’re typically paid quarterly and can give you a steady stream of income without selling shares. You can also choose to reinvest dividends to buy more shares automatically, compounding growth over time.
📈 Dividend Stocks: Steady Income From Solid Companies
Dividend-paying individual stocks can be a great way to build passive income — especially if you choose reliable, established companies.
Here are some examples that often appear on Fidelity’s high-dividend screens (illustrative examples, not specific recommendations):
| Ticker | Company | Sector | Typical Yield |
|---|---|---|---|
| TD | Toronto-Dominion Bank | Financials | ~4.1% |
| LNC | Lincoln National Corp. | Insurance | ~4.2% |
| CIBC | Canadian Imperial Bank of Commerce | Financials | ~3.6% |
| STI | SunTrust (now Truist) | Financials | ~3.5% |
| STI | Huntington Bancshares | Banking | ~3.5% |
📌 Dividend yields vary over time based on market conditions and company decisions.
🎯 Tip: Ex-Dividend Dates Matter
To receive the next dividend, you must own the stock before the ex-dividend date — the cutoff day. If you buy on or after the ex-dividend date, that dividend goes to the previous owner.
You can find up-to-date ex-dividend dates inside your Fidelity account under “Dividend View” or in the research pages for each stock.
📊 iShares & Fidelity ETFs: Diversify Your Dividend Income
Rather than picking individual stocks, many investors choose dividend-focused ETFs, which spread risk across many companies with dividends.
🧠 Example Dividend ETFs You Can Use with Fidelity
Fidelity & iShares Funds
- FDVV – Fidelity High Dividend ETF – targets large-cap dividend-paying stocks.
- FIDI – Fidelity International High Dividend ETF – focuses on international dividend stocks (yield ~4.3%).
- FPFD – Fidelity Preferred Securities & Income ETF – higher income focus with yield ~4.9%.
- DGRO – iShares Core Dividend Growth ETF – combines dividend payout with growth potential.
- IDV – iShares International Select Dividend ETF – global dividend exposure (historically ~4-5% yields).
📅 Typical ETF Dividend Dates
Most equity ETFs pay quarterly dividends. For many iShares funds, the typical 2026 schedule for the major quarterly payouts is (based on prior schedules):
| Quarter | Ex-Dividend Date | Pay Date |
|---|---|---|
| Q1 2026 | March 17 | March 20 |
| Q2 2026 | June 15 | June 18 |
| Q3 2026 | September 15 | September 18 |
| Q4 2026 | December 15 | December 18 |
(Specific tickers like DGRO, IDV, and others follow similar quarterly cycles through Fidelity; check the individual security details inside your Fidelity dashboard for updates.)
💡 How to Build a Passive Income Pattern
📌 Ladder your dividend dates
By combining stocks and ETFs with different payout timing, you can smooth income across the year — potentially receiving payouts every month.
📌 Reinvest dividends
Many investors choose DRIP (Dividend Reinvestment Plans) to automatically reinvest payouts and accelerate compound growth.
📌 Balance yield and stability
Higher yields often come with higher risk. Balance safe, lower-yield “blue-chip” dividend stocks with diversified dividend ETFs.
🧾 Taxes & Dividends
Dividends can count as ordinary income for tax purposes. Some qualify for lower qualified dividend tax rates depending on how long you held the shares and the type of dividend. Consult a tax advisor for personalized guidance.
🎯 Final Thoughts
Dividend investing can be a powerful way to earn passive income — especially if you use a trusted platform like Fidelity Investments to manage dividend stocks and iShares ETFs. With thoughtful allocation, reinvestment, and awareness of key dates like ex-dividend and pay dates, you’re setting yourself up for a smart and consistent income stream in 2026 and beyond.
Thanks again for reading — and wishing you continued success and passive income growth this year! 🙌
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