Fidelity Dividend Fund

Analysis: Managed by the team of Geoffrey Stein and Derek Young, this fund looks to provide investors with a mix of growth and income over the long term by investing in a portfolio of dividend paying equities. The fund is very focused on large cap stocks and is currently defensively positioned. Not surprising, it is significantly overweight in financial and utility stocks and is underrepresented in the volatile energy category. It is very well diversified, holding more than 100 stocks in the portfolio, with the top 10 making up about a third. The managers are fairly active in their strategy, as portfolio turnover has averaged approximately 70% for the past five years. It pays a variable monthly distribution which has ranged between $0.005 and $0.022 per unit. Because of this variability in the distribution, we would not consider it a great fund for those seeking regular income. Rather, it is better suited for those looking for long term growth. The long term performance numbers have been good, posting a five year return of 4.4%, doubling the return of the S&P/TSX Composite Index. Volatility has also been well below that of the index, making it a good core fund for investors with a lower risk tolerance. Costs are reasonable, with an MER on the Series B units of 2.12%, slightly below the category average.