It's hard to beat dividend-paying stocks, as they offer three ways to make money. As the companies grow, so will their share price, benefiting shareholders. They will also be paying those shareholders a cash dividend -- typically every quarter. And best of all, healthy and growing dividend payers tend to increase their payouts over time. So, if you're collecting $300 in dividends this year, that might turn into $600 or more a decade from now.
Here's a look at three solid dividend-focused exchange-traded funds (ETFs) from the folks at Fidelity. (Remember that an ETF is essentially a fund that trades like a stock, making it easy to get in and out of.)
Image source: Getty Images.
In the table below, you'll find the three Fidelity ETFs, along with a good S&P 500 index fund, for comparison.
|
ETF |
Recent dividend yield |
5-Year Avg. Annual Return |
10-Year Avg. Annual Return |
|---|---|---|---|
|
Fidelity High Dividend ETF (FDVV +0.14%) |
3.02% |
16.34% |
N/A |
|
Fidelity International High Dividend ETF (FIDI +0.50%) |
4.30% |
12.37% |
N/A |
|
Fidelity Total Bond ETF (FBND +0.18%) |
4.60% |
0.50% |
2.99% |
|
Vanguard S&P 500 ETF (VOO +1.02%) |
1.12% |
15.15% |
15.07% |
Source: Morningstar.com, as of December 11, 2025.
Let's take a closer look at each.
1. Fidelity High Dividend ETF
This ETF hasn't been around long enough to have a 10-year track record, but its five-year results are very solid, even outperforming the S&P 500. It tracks the Fidelity High Dividend Index, which is "designed to reflect the performance of stocks of large- and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends."
NYSEMKT: FDVV
Key Data Points
The ETF holds 103 stocks, with top holdings including Nvidia, Apple, Microsoft, and Broadcom. Those are not payers of fat dividends, but they've been fast growers, and their inclusion shows that the ETF is aiming for growth as well as income.
With its recent dividend yield of 3.02%, you'd need to have about $3,125,000 invested in the ETF in order to collect $100,000 in annual dividends. That's probably a tall order, but even having just, say, $30,000 in it can yield $960.
2. Fidelity International High Dividend ETF
While the ETF above will hold some stocks with significant international exposure, this international ETF is focused on companies based outside the U.S. It can thus be particularly attractive if you're worried about the U.S. economy's near-term prospects and/or a possible recession. It, too, has been performing well in its relatively short life -- in part thanks to a weakening dollar.
NYSEMKT: FIDI
Key Data Points
It holds 96 stocks, with top holdings including National Grid, British American Tobacco, and Nestlé.
With its recent dividend yield of 4.30%, you'd need to have about $2.3 million invested in the ETF in order to collect $100,000 in annual dividends.
3. Fidelity Total Bond ETF
Over most long periods, stocks outperform bonds, but many people still like to include some bonds in their portfolios for diversification purposes.
NYSEMKT: FBND
Key Data Points
The bond ETF was recently invested in more than 4,400 securities, with top holdings being U.S Treasury notes and bonds. With its recent dividend yield of 4.60%, you'd need to have about $2.18 million invested in the ETF in order to collect $100,000 in annual dividends.
4. Vanguard S&P 500 ETF
I'm including this S&P 500 ETF because, while Fidelity has an S&P 500 index fund, it doesn't offer it in ETF form. Still, Fidelity account holders can typically invest in other securities, such as this one.
It's always worth considering an S&P 500 index fund for your portfolio, but perhaps not if you want to collect $100,000 in annual dividend income, because you'd need more than $8 million invested in the ETF for that.
However you go about it, make sure that you have a solid retirement plan and that you're acting on it. Don't assume Social Security will be enough to support you in the future, because it's facing potential cuts to benefits.
You might want to invest in one or more of the ETFs above, or in some other solid dividend-focused funds. And don't worry if you're not immediately collecting $100,000 in income. If you keep adding to your portfolio and investing in more dividend payers, you may well get to that $100,000.
