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BOSTON (TheStreet) -- Fidelity Investments and Vanguard Group manage the two largest mutual funds that buy shares of large growth companies with rising dividends, but they couldn't be more different.

Fidelity's top picks are technology companies, including


(AAPL) - Get Apple Inc. Report



(CSCO) - Get Cisco Systems, Inc. Report



(HPQ) - Get HP Inc. Report

. Vanguard plays it safe with consumer staples such as


(PEP) - Get PepsiCo, Inc. Report


Procter & Gamble

(PG) - Get Procter & Gamble Company Report

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Johnson & Johnson

(JNJ) - Get Johnson & Johnson Report


The $7.2 billion

Fidelity Dividend Growth Fund

(FDGFX) - Get Fidelity Dividend Growth Report

, which holds 538 companies, is tilted toward an improving economy. Its largest industry weighting is technology, at 17.9% of assets, versus the

Vanguard Dividend Growth Fund's

(VDIGX) - Get Vanguard Dividend Growth Inv Report

6%. Financial firms comprise 17.6% of the Fidelity fund, compared with 7.5% for Vanguard, which has assets of $3.4 billion.

A faltering economy and

record-low bond yields encouraged investors to seek out large companies with big dividends

over the summer. That's as U.S. stocks posted gains for a third week, led by technology companies.


(ORCL) - Get Oracle Corporation Report

last week exceeded analysts' earnings estimates, and Cisco said it will start paying dividends. Before September's stock-market rebound, investors had been concerned about a double-dip recession.

Fidelity's largest holding is Apple, at 2.2%, followed by Cisco and Hewlett-Packard, at 1%. Apple has risen 31% this year and doesn't pay a dividend, but has a history of stock splits. One share costs almost $300. Another outlier in the fund is

Lam Research

(LRCX) - Get Lam Research Corporation Report

, a manufacturer of chip-making equipment. Its market value is only $4.9 billion, and it also doesn't pay a dividend. In contrast, Apple's market capitalization is $259 billion, and Cisco's is $123 billion.

The Vanguard fund, which holds 47 companies and shadows the Dividend Achievers Select Index, has conservative sector allocations, with consumer staples at 17.2% and health care at 16.7%. Still, its biggest position, at 3.6%, is

Automatic Data Processing

(ADP) - Get Automatic Data Processing, Inc. Report


Fidelity Dividend Growth has a total return of 2.5% percent this year, in line with the

Standard & Poor's 500's

2.4% gain. In the year ending Aug. 31, the fund had a return of 5.9%, besting the S&P 500's 4.9% advance.

The Fidelity fund yields 0.52% percent and has an annual expense ratio of 0.62%.

Vanguard Dividend Growth has returned 1.3% this year and 9.4% in the 12 months through August. It yields 2.15% and carries a low expense ratio of 0.38%.


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