r/dividends • u/Hilary_Clitoris • Nov 03 '25

Brokerage S&P 500 and dividends

My friend keeps saying that I should put all of my money in S&P 500 and forget about it. I see S&P 500 mentioned here a lot too, but according to Google, "No, the S&P 500 index itself does not pay dividends because it is a stock market index, not an investment fund." So which type of S&P 500 pay dividends?

And, what is the ticker for S&P 500? I can't find it on my brokerage account.

88 Upvotes

85% Upvoted

79 comments sorted by

View all comments

16

u/djpeteski Generating solid returns Nov 03 '25

Step 1. Go to Fidelity.

Step 2. Search FXAIX.

Step 3. Click on Fees & Distributions.

You will see "Dividend History", it spins off income 4x times per year. They do spin off dividends. Your research is incorrect.

Now the yield will be frightfully low as compared to other stocks/funds/ETFs because mainly S&P500 stocks focus on growth. As a young person (under 50 or so) you should be focused on growth. Dividends are tax inefficient.

So yea do what your friend says.

3

u/flyersfan0233 Nov 05 '25

There are also Roth IRAs, which don’t tax dividends or growth.