Fidelity Dividend Growth Fund

[Pages:9]PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

Fidelity? Dividend Growth Fund

Key Takeaways

? For the fiscal year ending July 31, 2021, the fund's Retail Class shares

gained 42.42%, well ahead of the 36.45% advance of the benchmark S&P 500? index.

? After some initial choppiness, the U.S. stock market trended mainly

upward from November through July, aided by the emergency approval and subsequent rollout of three COVID-19 vaccines, investor expectations of accelerating global economic growth, and considerable fiscal and monetary stimulus.

? In the large-cap arena, value stocks outpaced their growth

counterparts for most of the period. However, a late surge by growth resulted in the two groups finishing roughly even for the 12-month period.

? Versus the benchmark, favorable security selection drove the fund's

solid performance, especially in the consumer discretionary sector. Investment choices and an overweighting among industrials stocks also helped. Overall, we added value in seven of 11 benchmark sectors.

? Conversely, positioning in energy, communication services and

information technology worked against the portfolio's relative performance during the period.

? On January 1, 2021, Gordon Scott came off of the fund, leaving Zach

Turner as sole portfolio manager.

? As of July 31, Zach is looking to opportunistically reduce the fund's

cyclical exposure and boost its weighting in companies that can grow even in a decelerating economic environment.

Not FDIC Insured ? May Lose Value ? No Bank Guarantee

MARKET RECAP

The S&P 500? index gained 36.45% for the 12 months ending July 31, 2021, as U.S. equities continued a historic rebound following a steep but brief decline due to the early-2020 outbreak and spread of COVID-19. A confluence of powerful forces propelled risk assets, returning the stock market to prepandemic highs by late August 2020. The rally slowed in September, when stocks began a two-month retreat amid Congress's inability to reach a deal on additional fiscal stimulus, as well as uncertainty about the election. But as the calendar turned, investors grew hopeful. The rollout of three COVID-19 vaccines was underway, the U.S. Federal Reserve pledged to hold interest rates near zero until the economy recovered, and the federal government planned to deploy trillions of dollars to boost consumers and the economy. This backdrop fueled a sharp rotation, with small-cap value usurping leadership from large growth. As part of the "reopening" theme, investors moved out of tech-driven mega-caps that had thrived due to the work-from-home trend in favor of cheap smaller companies that stood to benefit from a broad cyclical recovery. A flattish May reflected concerns about inflation and jobs, but the uptrend resumed through July, driven by corporate earnings. Notably, this leg saw momentum shift back to large growth, as easing rates and a hawkish Fed stymied the reflation trade. By sector, financials (+55%) led, driven by banks (+63%), whereas utilities (+12%) and consumer staples (+18%) notably lagged.

PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

Q&A

Zach Turner Portfolio Manager

Fund Facts

Trading Symbol: Start Date: Size (in millions):

FDGFX April 27, 1993 $6,923.01

Investment Approach

? Fidelity? Dividend Growth Fund is a diversified domestic equity strategy with a large-cap core orientation. The fund seeks capital appreciation.

? The fund invests in a mix of large- and mid-cap stocks that have favorable prospects to sustainably pay and grow dividends over time.

? Our investment philosophy centers on comparing price and value. We believe price will converge with value over time in a competitive market. Quality is an integral part of our assessment of value.

? We also believe that companies with a history of growing dividends demonstrate superior risk-adjusted returns over the course of a market cycle.

? A disciplined approach combining fundamental analysis, quality, valuation and accelerating capital return can help lead to outperformance over time.

An interview with Portfolio Manager Zach Turner

Q: Zach, how did the fund perform for the fiscal year ending July 31, 2021

The fund's Retail Class shares gained 42.42%, well ahead of the 36.45% advance of the benchmark S&P 500? index. The fund also topped its peer group average, although by a smaller margin.

Q: What was noteworthy about the market environment the past 12 months

In the first three months of the period, U.S. stocks were choppy, reflecting uncertainty about surging COVID-19 infection rates and lawmakers' inability to agree on another economic stimulus package.

However, the market trended mainly upward from November through July, aided by the emergency approval and subsequent rollout of three COVID-19 vaccines, investor expectations of accelerating global economic growth, and considerable fiscal and monetary stimulus.

In the large-cap arena, value stocks outpaced their growth counterparts for most of the period. However, a late surge by growth resulted in the two groups finishing roughly even for the past 12 months.

Q: How did you respond to these developments

When I took over day-to-day management of the fund in the late summer and early fall of 2020, my main focus was adding to the fund's growth exposure to provide more balance with the value-oriented and cyclical stocks in the portfolio.

However, in December the U.S. Food and Drug Administration granted Emergency Use Authorizations (EUAs) for both the Pfizer/BioNTech and Moderna vaccines, while the Johnson & Johnson vaccine received an EUA shortly thereafter, setting the stage for the rapid rollout of a national vaccination program.

In response to this favorable news on COVID-19 vaccines, I increased the fund's exposure to cyclically sensitive companies, which helped relative performance. I especially tried to focus on situations where I thought the market was either underestimating the pace of a company's revenue recovery or the impact of cost containment.

2 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

Then this past summer, prospects for the U.S. economy became more clouded, especially in response to the sudden surge in cases of the infectious delta variant of the COVID-19 virus, and inflation seeming to be less transitory than some had expected. Thus, I began shifting exposure back toward companies that I believe can generate growth in a variety of economic environments.

Q: What contributed most to the fund's performance versus the benchmark

Favorable security selection drove the fund's solid performance compared with the benchmark, especially in the consumer discretionary sector. Investment choices and an overweighting among industrials stocks also helped. Overall, we added value in seven of 11 benchmark sectors.

In stock-specific terms, two of the top relative contributors were and Tesla, both benchmark components we didn't own that returned roughly +5% and -1%, respectively. Neither one of these companies paid a dividend, so I looked elsewhere for opportunities.

A sizable overweighting in Tapestry also lifted the portfolio's relative result, as our stake in the owner of luxury brands Coach, Kate Spade and Stuart Weitzman surged roughly 215% the past 12 months. In October, the company reported financial results for its fiscal first quarter that considerably exceeded consensus expectations, paced by strong ecommerce sales, tighter expense controls and double-digit revenue growth in mainland China.

Tapestry successfully shifted its marketing efforts during the pandemic, gaining 800,000 new online customers across its three brands online in North America during its fiscal first quarter. An improving outlook for the fashion luxury industry overall, amid promising news about COVID-19 vaccines, further bolstered the stock. In turn, I considerably reduced this position to lock in profits.

Another notable relative contributor was our larger-thanbenchmark position in Discover Financial Services (+157%). At the beginning of August 2020, the firm appeared cheap on the basis of normalized earnings, and I thought investors were excessively worried about potential credit losses stemming from the pandemic. This proved to be an accurate assessment, as generous government support payments kept credit conditions from deteriorating much. Shares of Discover recovered nicely along with the broader equity market, and I lowered the fund's exposure as the stock advanced.

Looking at individual holdings, the fund's largest detractor compared with the benchmark was Alphabet, which advanced 82%. I underweighted this benchmark component, mainly due to the stock's lack of a dividend.

Major energy producer Exxon Mobil also weighed on relative performance. The company had been the fund's largest holding at the end of the previous fiscal year ending July 31, 2020. Despite rising 47% the past 12 months, the stock lagged earlier in the period, when we had our largest relative exposure.

I then reduced the fund's stake in Exxon Mobil to a modest overweight by period end. Although I was sanguine on the near-term outlook for oil prices and pleased to see the firm's pledge to cut costs and reduce capital spending, I was less confident in the longer-term demand outlook for hydrocarbons as a whole, given the world's pivot toward renewable energy sources.

Barrick Gold, an out-of-benchmark holding that I purchased during the period, further detracted, as evidenced by our stake in the Canada-based gold producer returning -26%. The stock remained in the portfolio at the end of the fiscal year, but at a somewhat reduced level, as I continued to evaluate the potential impact of a number of factors on goldrelated investments. These included shifting real, or inflationadjusted, interest rates and growing interest in cryptocurrencies as a store of value among investors.

Q: What's your outlook as of July 31, Zach

My view has shifted considerably from just a few months ago, when there appeared to be multiple dynamics driving the reopening trade in stock markets. I now believe we are approaching the later innings of that trade due to the spread of the delta variant of the COVID-19 coronavirus, expectations of slowing economic growth and rising inflationary pressures.

A slowing U.S. economy would likely hurt cyclically sensitive stocks, and so, on balance, I'm looking to opportunistically reduce the fund's exposure there and use the proceeds to boost our weighting in companies that can grow even in a decelerating economic environment, whether that's through taking market share, creating new market opportunities, or having the ability to raise prices in excess of cost inflation.

Q: What about detractors

Positioning in the energy, communication services and information technology sectors worked against the fund's relative performance this period.

3 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

Zach Turner on the fund's recent shift in positioning:

"Broadly speaking, my intent is to run the fund in a fairly balanced way with respect to its exposure to growth, defensive and value/cyclicals stocks. Earlier in 2021, I was, at the margin, increasing the fund's exposure to cyclical plays, based on the apparent success of the COVID-19 vaccine rollout and signs of rebounding economic growth. Over the summer, however, prospects for the U.S. economy became more clouded, so I began shifting back toward companies that are less dependent on broader economic growth. With that in mind, I'll mention one cyclical play and one defensive holding I especially like.

"General Electric (GE, +109%) is a cyclical position in which I increased the fund's exposure later in the period after reducing it early on. It's an industrial company whose earnings have historically been dominated by two segments: GE Aviation and GE Healthcare. Most of the aviation division's profits are generated from aftermarket services, and so its longer-term performance is tightly linked to global passenger miles flown and the number of takeoffs and landings, when aircraft engines are under the most stress. Although global air traffic largely came to a standstill during the peak of the pandemic, the longer-term outlook is bright, in my view. The other big opportunity at GE is the potential to turn around the ailing power business, which manufactures gaspowered turbines, as well as wind farm and hydroelectric infrastructure. Though expectations are low, I believe there is an opportunity to swing the power division toward profitability in the coming quarters.

"On the other hand, Dollar General (+16%) is a defensive, countercyclical stock that I purchased in the fund this period. Over the last 10 years, the company has grown its total retailing square footage at a compound annual growth rate of 6.6% and same store sales at a 4.5% clip, with sales actually accelerating during both the Great Recession of 2007?2009 and the pandemic. The company has done this by staying laser-focused on its underserved demographic of low-income patrons in low-density neighborhoods, often not within 10 miles of a big-box discount retailer."

LARGEST CONTRIBUTORS VS. BENCHMARK

Holding

Market Segment

, Inc.

Consumer Discretionary

Tapestry, Inc.

Consumer Discretionary

Discover Financial Services

Financials

General Motors Co.

Consumer Discretionary

PVH Corp.

Consumer Discretionary

* 1 basis point = 0.01%.

Average Relative Relative Contribution Weight (basis points)*

-4.35%

155

0.97%

118

1.08%

106

0.81%

77

0.77%

69

LARGEST DETRACTORS VS. BENCHMARK

Holding

Market Segment

Alphabet, Inc. Class A

Communication Services

Exxon Mobil Corp. Energy

Cisco Systems, Inc.

Information Technology

Barrick Gold Corp.

Materials

Energizer Holdings, Inc.

Consumer Staples

* 1 basis point = 0.01%.

Average Relative Relative Contribution Weight (basis points)*

-2.70%

-104

0.77%

-62

-0.41%

-59

0.44%

-46

0.53%

-35

4 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

ASSET ALLOCATION

Asset Class

Portfolio Weight Index Weight

Relative Weight

Relative Change From Six Months

Ago

Domestic Equities

82.09%

100.00%

-17.91%

-3.78%

International Equities

17.84%

0.00%

17.84%

4.08%

Developed Markets

13.41%

0.00%

13.41%

5.36%

Emerging Markets

4.43%

0.00%

4.43%

-1.28%

Tax-Advantaged Domiciles

0.00%

0.00%

0.00%

0.00%

Bonds

0.00%

0.00%

0.00%

0.00%

Cash & Net Other Assets

0.07%

0.00%

0.07%

-0.30%

Net Other Assets can include fund receivables, fund payables, and offsets to other derivative positions, as well as certain assets that do not fall into any of the portfolio composition categories. Depending on the extent to which the fund invests in derivatives and the number of positions that are held for future settlement, Net Other Assets can be a negative number.

"Tax-Advantaged Domiciles" represent countries whose tax policies may be favorable for company incorporation.

MARKET-SEGMENT DIVERSIFICATION

Market Segment Information Technology Health Care Consumer Discretionary Industrials Financials Communication Services Consumer Staples Energy Utilities Materials Real Estate Other

Portfolio Weight 26.72% 13.30% 11.68% 10.64% 9.90% 7.22% 6.00% 4.26% 3.68% 3.49% 3.03% 0.00%

Index Weight 27.82% 13.42% 12.05% 8.41% 10.95% 11.24% 5.85% 2.55% 2.48% 2.59% 2.63% 0.00%

Relative Weight -1.10% -0.12% -0.37% 2.23% -1.05% -4.02% 0.15% 1.71% 1.20% 0.90% 0.40% 0.00%

Relative Change From Six Months

Ago -4.42% 4.14% -2.20% -0.97% -0.06% -1.21% 2.28% 1.24% 2.20% -1.12% 0.41% 0.00%

5 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

10 LARGEST HOLDINGS

Holding

Market Segment

Portfolio Weight

Portfolio Weight Six Months Ago

Microsoft Corp.

Information Technology

8.09%

7.89%

Wells Fargo & Co.

Financials

2.47%

1.33%

Visa, Inc. Class A

Information Technology

2.38%

2.32%

Apple, Inc.

Information Technology

2.17%

2.48%

UnitedHealth Group, Inc.

Health Care

1.81%

1.60%

General Electric Co.

Industrials

1.76%

1.30%

Bank of America Corp.

Financials

1.61%

1.42%

NVIDIA Corp.

Information Technology

1.54%

0.81%

Bristol-Myers Squibb Co.

Health Care

1.44%

0.58%

Dollar General Corp.

Consumer Discretionary

1.37%

0.74%

10 Largest Holdings as a % of Net Assets

24.66%

23.59%

Total Number of Holdings

145

147

The 10 largest holdings are as of the end of the reporting period, and may not be representative of the fund's current or future investments. Holdings do not include money market investments.

FISCAL PERFORMANCE SUMMARY: Periods ending July 31, 2021

Cumulative

6 Month

YTD

1 Year

Annualized

3 Year

5 Year

10 Year/ LOF1

Fidelity Dividend Growth Fund Gross Expense Ratio: 0.49%2

19.17%

18.67%

42.42%

12.06%

12.56%

11.36%

S&P 500 Index

19.19%

17.99%

36.45%

18.16%

17.35%

15.35%

Morningstar Fund Large Value

18.79%

18.30%

38.84%

10.77%

11.51%

11.36%

% Rank in Morningstar Category (1% = Best)

--

--

34%

31%

31%

54%

# of Funds in Morningstar Category

--

--

1,205

1,136

1,007

739

1 Life of Fund (LOF) if performance is less than 10 years. Fund inception date: 04/27/1993. 2 This expense ratio is from the prospectus in effect as of the date shown above and generally is based on amounts incurred during that fiscal year. It does not include any fee waivers or reimbursements, which would be reflected in the fund's net expense ratio.

Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance stated. Performance shown is that of the fund's Retail Class shares (if multiclass). You may own another share class of the fund with a different expense structure and, thus, have different returns. To learn more or to obtain the most recent month-end or other share-class performance, visit performance, institutional., or . Total returns are historical and include change in share value and reinvestment of dividends and capital gains, if any. Cumulative total returns are reported as of the period indicated. Please see the last page(s) of this Q&A document for most-recent calendarquarter performance.

6 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

Definitions and Important Information

Information provided in this document is for informational and educational purposes only. To the extent any investment information in this material is deemed to be a recommendation, it is not meant to be impartial investment advice or advice in a fiduciary capacity and is not intended to be used as a primary basis for you or your client's investment decisions. Fidelity, and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in, and receive compensation, directly or indirectly, in connection with the management, distribution and/or servicing of these products or services including Fidelity funds, certain third-party funds and products, and certain investment services.

performing fund in a category will always receive a rank of 1%. % Rank in Morningstar Category is based on total returns which include reinvested dividends and capital gains, if any, and exclude sales charges. Multiple share classes of a fund have a common portfolio but impose different expense structures.

RELATIVE WEIGHTS Relative weights represents the % of fund assets in a particular market segment, asset class or credit quality relative to the benchmark. A positive number represents an overweight, and a negative number is an underweight. The fund's benchmark is listed immediately under the fund name in the Performance Summary.

FUND RISKS

Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks.

IMPORTANT FUND INFORMATION

Relative positioning data presented in this commentary is based on the fund's primary benchmark (index) unless a secondary benchmark is provided to assess performance.

INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices include reinvestment of dividends and interest income unless otherwise noted.

S&P 500 is a market-capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.

MARKET-SEGMENT WEIGHTS

Market-segment weights illustrate examples of sectors or industries in which the fund may invest, and may not be representative of the fund's current or future investments. They should not be construed or used as a recommendation for any sector or industry.

RANKING INFORMATION

? 2021 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Fidelity does not review the Morningstar data and, for mutual fund performance, you should check the fund's current prospectus for the most up-to-date information concerning applicable loads, fees and expenses.

% Rank in Morningstar Category is the fund's total-return percentile rank relative to all funds that have the same Morningstar Category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-

7 |

PORTFOLIO MANAGER Q&A | AS OF JULY 31, 2021

Manager Facts

Zachary Turner is a portfolio manager in the Equity division at Fidelity Investments. Fidelity Investments is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing, and other financial products and services to institutions, financial intermediaries, and individuals. In this role, Mr. Turner is responsible for managing the Fidelity and Fidelity Advisor Dividend Growth Funds. Prior to assuming these responsibilities, Mr. Turner managed Fidelity Select IT Services Portfolio, covered information technology services and small-cap software stocks as a research analyst, and was a generalist on the Income team with a focus on dividend-growth stocks. He has been in the financial industry since joining Fidelity in 2010. Mr. Turner earned his bachelor of science in accountancy from the University of Florida.

8 | For definitions, fund risks and other important information, please see the Definitions and Important Information section of this Q&A.

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