Dividend investors seeking to generate income and returns in the U.S. equity market can achieve their objectives by investing in the following four mutual funds: the Vanguard Dividend Growth Fund (VDIGX), Fidelity Equity Dividend Income Fund (FEQTX), Vanguard Equity Income Fund Investor Shares (VEIPX) and Fidelity Strategic Dividend & Income Fund (FSDIX). These mutual funds primarily invest in U.S. equity securities, and three of them have 30-day SEC yields greater than 2%. All information provided here was current as of Oct. 15, 2018. 

Vanguard Dividend Growth Fund

The Vanguard Dividend Growth Fund is an actively managed mutual fund that seeks long-term appreciation, current income and an increasing stream of income. The fund aims to achieve its short-term investment objective by investing in stocks offering current dividends. Additionally, it seeks to achieve its long-term investment objective by investing in companies with the potential to generate returns, grow earnings and increase dividends over the long term.

The fund charges an annual net expense ratio of 0.26%, which is 73% less than the average annual net expense ratio of similar funds. VDIGX has a trailing 12-month yield of 16.27% and a 30-day SEC yield of 1.96%. It holds 42 stocks and has total net assets of $34.80 billion. Although it is primarily invested in U.S. equity securities, it allocates 5.10% of its portfolio to foreign securities.

Fidelity Equity Dividend Income Fund

The Fidelity Equity Dividend Income Fund is an actively managed mutual fund that seeks capital appreciation and has generated a yield exceeding that of the S&P 500 Index. To achieve its investment objective, the fund normally invests at least 80% of its total net assets in equity securities that offer current dividends and have the potential for long-term capital appreciation. While it is not a pure U.S. equity mutual fund, this fund allocates 85.79% of its portfolio to securities in the United States. The fund has an annual net expense ratio of 0.71%, a trailing 12-month yield of 8.53% and a 30-day SEC yield of 2.51%.

Vanguard Equity Income Fund Investor Shares

The Vanguard Equity Income Fund seeks long-term capital appreciation and an above-average current income. The fund primarily invests in undervalued mid- and large-cap stocks that pay above-average levels of dividend income compared to their competitors. VEIPX charges an annual net expense ratio of 0.26%, which is 74% less than the average figure of large-cap no-load funds. The fund offers a trailing 12-month yield of 10.58% and a 30-day SEC yield of 2.87%. It holds 190 stocks, and the investor share class has total net assets of $33.40 billion. It primarily invests in U.S. equity securities and allocates only 9.10% of its portfolio to foreign securities.

Fidelity Strategic Dividend & Income Fund

The Fidelity Strategic Dividend & Income Fund seeks capital appreciation and income. Under normal market conditions, it invests at least 80% of its total net assets in equity securities. Approximately 53% of its portfolio is allocated to common stocks, 17% to preferred stocks, 15% to real estate investment trusts (REITs) and other real estate-related investments, and 11% to convertible securities. Since the fund invests in convertible securities, it carries a small degree of interest rate risk. The fund has a trailing 12-month yield of 7.90% and a 30-day SEC yield of 2.34%. It charges a below-average annual net expense ratio of 0.76%, relative to its category of aggressive allocation no-load funds, and has 4.72 billion in net assets.