Fidelity Select Fundranker

Fundranker Blog—April 17 Dividends

April 17 Dividends

Fidelity Investments paid dividends on April 17, 2009, the ex-dividend date, for three of the funds in Fundranker’s Top Eight Model Portfolio: Select Electronics, Select Pharmaceuticals, and Select Telecommunications. If you hold any of these funds in taxable accounts, here’s the scoop on how to determine whether your shares in these three funds meet the 61-day holding period test for qualified dividends. Of course, if you purchased or exchange any or all of your shares in these three funds on days other than Fundranker exchange dates, you will have to calculate your 61-day holding periods using those dates. See Select Fund Dividends for more information.

Fundranker’s Top Eight Model Portfolio purchased Select Electronics on April 3, so the underlying shares will not meet the 61-day holding period test until June 3, 2009. If Fidelity Investments reports it on your 2009 Form 1099-DIV as a qualified dividend and Fundranker holds it through June 3, you should report it as a qualified dividend on your 2009 Form 1040. If Fundranker exchanges the fund before June 3, you should not report it as a qualified dividend on your 2009 Form 1040.

Fundranker’s Top Eight Model Portfolio purchased Select Pharmaceuticals on October 2, 2008, so the underlying shares already easily meet the 61-day holding period test for qualified dividends. If Fidelity Investments reports Pharmaceutical’s April 17 dividend on your 2009 Form 1099-DIV as a qualified dividend, you should report it as a qualified dividend on your 2009 Form 1040.

Fundranker’s Top Eight Model Portfolio purchased Select Telecommunications on March 4, so the underlying shares will meet the 61-day holding period test for qualified dividends on May 4, Fundranker’s next exchange date. Even if Fundranker exchanges the fund that day, the underlying shares still will meet the 61-day holding period test for qualified dividends. If Fidelity Investments reports Telecommunications’ April 17 dividend as a qualified dividend, you should report it as a qualified dividend on your 2009 Form 1040.

Posted 4/17/09 9:03pm ET in Fidelity Investments, Fundranker, Tax Tips

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