Short/intermediate bond fund question
Here’s a summary of the main problem and solutions discussed in the post:
- Main Problem: The user is concerned about whether changes in bond fund values affect dividend amounts.
- Solution Provided: Fidelity clarified that dividend payments are not guaranteed and can change, including potential discontinuation.
- Additional Resources: Fidelity provided links for further information on dividends and bond funds.
- Contact Option: The user was encouraged to reach out to Fidelity’s Fixed Income team for more assistance.
These steps should help the user make a more informed decision regarding their investment.
Here’s the full thread
Hello Fidelity, I see that bond funds are sensitive to inflation rate changes, but do they also affect dividend amounts? If the bond funds go up or down, do dividends get affected? Just double checking before I make that move. Thanks!
Thanks for reaching out, @Parzival1099!
To start, it’s important to note that although many funds pay dividends periodically, dividend payments are not guaranteed. Dividend schedules can change, including discontinuing a dividend at the will of the fund or company. We will distribute dividend payments accordingly once a dividend is announced and received. Check out the links below that discuss dividends further and an overview of bond funds.
Why dividends matter: https://www.fidelity.com/learning-center/investment-products/stocks/why-dividends-matter
What are bond funds? https://www.fidelity.com/learning-center/investment-products/mutual-funds/what-are-bond-funds
You may also consider reaching out to our Fixed Income team for assistance. They can be reached Monday – Friday, 8:00 a.m. – 8:00 p.m. ET. Just say “Fixed Income” when prompted.
Contact Us: https://www.fidelity.com/customer-service/contact-us
Let us know if any other questions come up! 🟢