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Data last updated: Oct 19, 2026
Snapshot (as of Oct 19, 2026): Fidelity Freedom 2040 (FFFFX) pays a $0.20 annual dividend, yielding 6.45% at $14.21/share. Source: Yahoo Finance, aggregated by MerryDiv.
Dividend Yield: 6.45%
Annual Dividend: $0.20 per share
Years of Dividend History: 26
Fidelity Freedom 2040 is a target-date fund that spreads assets across U.S. stock funds, international stock funds, bond funds, and short-term money market options, all managed along a glide path that gradually shifts allocation toward income over time. The Fidelity Freedom 2040 dividend currently yields 6.41%, with a trailing annual rate of $0.9170 per share. The next ex-dividend date is May 8, 2026. At a beta of 1.18, FFFFX carries slightly more price volatility than the broader market, which income-focused investors should weigh against that headline yield.
Fidelity Freedom 2040 pays out dividends as a fund, making a traditional payout ratio not applicable (fund/ETF). Fidelity Freedom 2040 dividend safety is tied to the performance of its underlying holdings: U.S. and international equities, bonds, and money market instruments, whose distributions flow through to shareholders. The primary pressure point is that a beta of 1.18 means the fund's asset base moves with market swings, and a sustained downturn in equity or bond markets would directly reduce the income available to pass through.
Fidelity Freedom 2040 dividend history shows a CAGR of 7.8% per year from 2004 to 2025. Per-share payments grew from $0.1400 to $0.6790 over that span (2026 is a partial year and excluded from this calculation). The largest annual increase in the window was 186.5% in 2006, but the history also contains at least one year-over-year decline exceeding 5%, so growth has not been linear.
| Period | CAGR | From | To |
|---|---|---|---|
| 3-Year | -14.8% | $1.10 (2022) | $0.68 (2025) |
| 5-Year | +0.4% | $0.67 (2020) | $0.68 (2025) |
| 10-Year | +2.1% | $0.55 (2015) | $0.68 (2025) |
FFFFX fits income-focused investors who want broad diversification across equities, bonds, and money markets packaged into a single fund. The yield is classified as high (above 4%), and at 6.41% it sits well above the fund's own 5-year average of 5.22%, which means current income is running hotter than recent norms. Growth over the long window has averaged 7.8% annually, but the history includes meaningful year-over-year declines, so income is not smooth. The trade-off is straightforward: investors get a high current yield from a diversified, glide-path-managed fund, but accept that distributions will fluctuate with underlying market performance rather than follow a predictable upward path.
| Payment Date | Amount per Share |
|---|---|
| 2026-05-08 | $0.5490 |
| 2025-12-30 | $0.3680 |
| 2025-05-09 | $0.3110 |
| 2024-12-30 | $0.2580 |
| 2024-05-10 | $0.0460 |
| 2023-12-28 | $0.1450 |
| 2023-05-12 | $0.0350 |
| 2022-12-29 | $0.3400 |
| 2022-05-06 | $0.7560 |
| 2021-12-30 | $0.8770 |
| Year | Total Dividends |
|---|---|
| 2026 | $0.5490 |
| 2025 | $0.6790 |
| 2024 | $0.3040 |
| 2023 | $0.1800 |
| 2022 | $1.0960 |
Project income from FFFFX with the FFFFX dividend calculator or track your full portfolio with the dividend tracker.