Target date funds are a type of mutual fund that are designed to grow over time and then provide income during retirement. The fund’s managers choose investments based on when the investor is expected to retire. Fidelity Investments offers Target date funds with different retirement dates. The funds are managed by different teams within Fidelity.
The Fidelity Freedom® Funds Target dates range from 2020 to 2060.
The Fidelity Retirement Income Fund has a Target date of 2025.
Fidelity’s website says that the company does not guarantee that the fund will pay dividends. However, many Target date funds do pay dividends. For example, the Vanguard Target Retirement Income Fund has a dividend yield of 1.8%.
In conclusion, while there is no guarantee that a fidelity Target date fund will pay dividends, many do pay dividends, and the Vanguard Target Retirement Income Fund has a dividend yield of 1.