Exploring FDL: A Deep Dive into Dividends with First Trust Morningstar Dividend Leaders ETF
FDL - Market Position
| Ticker Symbol | Product Type | Asset Class | Strategy | Payment Frequency | Geographic Focus | Expense Ratio | Sponsor |
|---|---|---|---|---|---|---|---|
| FDL | ETF | Equity Dividend ETF | High Dividend Yield | Quarterly | US Domestic | 0.50% | First Trust |
FDL Overview - The First Trust Morningstar Dividend Leaders ETF
The First Trust Morningstar Dividend Leaders ETF (FDL) is an exchange-traded fund designed to provide investors with exposure to a diversified portfolio of high-dividend-yielding stocks. FDL tracks the Morningstar Dividend Leaders Index, which includes companies that have a history of consistently paying and increasing dividends over time.
This ETF focuses on companies with strong financial health and a track record of reliable dividend payments, making it attractive to income-seeking investors. The portfolio comprises stocks from various sectors, including utilities, consumer goods, financials, and industrials, offering diversification benefits.
Investors in FDL can benefit from the ETF's quarterly dividend distributions, which can contribute to a steady stream of income. Additionally, FDL's expense ratio of 0.50% is relatively low compared to other dividend-focused ETFs, enhancing its appeal to cost-conscious investors.
With a geographic focus on U.S. domestic companies, FDL provides exposure to the American market's dividend-paying stalwarts. This focus can appeal to investors seeking stability and income from established companies with a history of rewarding shareholders.
Overall, FDL offers investors an opportunity to invest in a diversified portfolio of high-quality dividend-paying stocks, potentially providing a combination of income and long-term growth prospects within the ETF structure.
FDL - Price / Yield
FDL - Portfolio and Asset Allocation
The First Trust Morningstar Dividend Leaders ETF (FDL) holds a diverse portfolio of high-dividend-yielding stocks, providing investors with exposure to established companies across various sectors. The top 10 holdings, including companies like Chevron (CVX), Verizon Communications (VZ), and Abbvie (ABBV), reflect a strategic focus on dividend stability and potential for long-term growth.
Chevron (CVX) represents the energy sector, offering a solid dividend yield and strong market capitalization. Verizon Communications (VZ) in telecommunications and Abbvie (ABBV) in healthcare showcase sector diversification within the portfolio.
The asset allocations indicate a significant presence in financial and energy sectors, which can provide income stability and growth potential. Healthcare and consumer defensive sectors contribute to portfolio resilience.
Analyst recommendations ranging from Strong Buy to Moderate Buy across holdings highlight positive market sentiment. Upside potential and dividend yield considerations suggest FDL's suitability for income-oriented investors seeking a balance of dividend income and portfolio growth.
Overall, FDL's holdings and portfolio composition reflect a strategic blend of dividend-focused stocks across sectors, positioning the ETF as a potential choice for investors seeking dividend stability and long-term value.
Top 10 Holdings
As of May 2, 2024, the top 10 holdings of the First Trust Morningstar Dividend Leaders ETF (FDL) are:
| Name | Weight |
|---|---|
| Chevron (CVX) | 10.02% |
| Verizon Communications (VZ) | 8.47% |
| Abbvie (ABBV) | 7.55% |
| Pfizer Inc (PFE) | 7.32% |
| Philip Morris International (PM) | 6.56% |
| Altria (MO) | 5.66% |
| International Business Machines Corporation (IBM) | 3.92% |
| Citigroup Inc (C) | 3.33% |
| 3M Company (MMM) | 2.74% |
| Duke Energy (DUK) | 2.59% |
Asset Allocation
The First Trust Morningstar Dividend Leaders ETF (FDL) has the following asset allocation as of May 2, 2024:
| Sector | Weight |
|---|---|
| Financial | 22.35% |
| Energy | 20.12% |
| Healthcare | 14.74% |
| Consumer Defensive | 12.08% |
| Utilities | 9.77% |
| Communication Services | 8.57% |
| Technology | 3.98% |
| Consumer Cyclical | 3.43% |
| Industrials | 2.75% |
| Basic Materials | 2.20% |
Dividend Yield and Distribution History
| Section | Details |
|---|---|
FDL Dividend Data |
The First Trust Morningstar Dividend Leaders ETF (FDL) pays quarterly dividends. The most recent ex-dividend date was on March 21, 2024, with a dividend payment of $0.33 per share. |
FDL Dividend Yield |
As of May 2, 2024, the 30-day SEC yield for FDL is 4.47%. This means that for every $100 invested in the fund, investors would receive $4.47 in dividends per year, assuming the yield remains constant. |
FDL Dividend History |
FDL has a history of paying quarterly dividends. The dividend payments may fluctuate based on the performance of the underlying dividend-paying stocks held by the fund. |
FDL Dividend Growth |
FDL's dividend payments are dependent on the dividend growth and performance of the underlying stocks in the fund's portfolio. The fund's investment strategy focuses on companies with a history of consistent dividend growth, which may contribute to increasing dividend payments over time. However, dividend growth is not guaranteed. |
FDL Dividend Stability |
FDL aims to provide a relatively stable income stream by investing in high-quality, dividend-paying stocks of larger U.S. companies. However, the dividend payments are not guaranteed and may be affected by changes in market conditions or the performance of the underlying stocks in the fund's portfolio. |
FDL - Chart
FDL - Comparative Analysis
Let's compare FDL with prominent competitors, focusing on key aspects like performance, fees, and strategy: (as of May 2024)
| FDL | PQDI | RDVY | |
|---|---|---|---|
| Investment Focus | High-quality, dividend-paying stocks of larger U.S. companies | Diversified exposure to high-dividend-paying companies globally | Diversified exposure to U.S. companies with a focus on dividend growth |
| Current Yield | 4.47% | 3.25% | 1.92% |
| Expense Ratio | 0.45% | 0.30% | 0.20% |
| Investment Strategy | Actively managed, focuses on attractively valued companies with consistent dividend growth potential | Passively tracks the Nasdaq US Dividend Achievers Select Index | Passively tracks the NASDAQ US Dividend Achievers 50 Index |
| Strengths | Potential for higher returns through active management, emphasis on dividend consistency and growth | Diversified exposure to global dividend-paying companies, competitive yield | Focus on U.S. companies with a strong track record of dividend growth, lower expense ratio |
| Weaknesses | Higher expense ratio than some passive funds, potential for higher volatility | Less flexibility compared to actively managed funds, potential lag in performance compared to market leaders | Relatively lower current yield compared to peers, limited exposure to international markets |
Dividend History (Last 5 distributions)
| Ex-Dividend Date | Cash Amount | Record Date | Pay Date |
|---|---|---|---|
| Mar 21, 2024 | $0.33 | Mar 22, 2024 | Mar 28, 2024 |
| Dec 22, 2023 | $0.52 | Dec 26, 2023 | Dec 29, 2023 |
| Sep 22, 2023 | $0.36 | Sep 25, 2023 | Sep 29, 2023 |
| Jun 27, 2023 | $0.46 | Jun 28, 2023 | Jun 30, 2023 |
| Mar 24, 2023 | $0.31 | Mar 27, 2023 | Mar 31, 2023 |
News
Technical Analysis
Additional Information and Risks
First Trust Morningstar Dividend Leaders (FDL) is designed to measure the performance of the 100 highest-yielding dividend stocks in the U.S. market. Its ability to sustain dividend payments is a key factor for investors, as it focuses on stocks with a consistent record of dividend payment and the ability to sustain their dividend payments.
The Fund excludes stocks with uncertain dividend prospects and aims to provide a stable income stream. However, investors should note that past dividend performance is not a guarantee of future results, and dividend yields may fluctuate based on market conditions and stock performance.
ETF investors should consider the dividend yield and the top 100 securities comprising the Fund. While FDL aims to provide attractive dividend income, it's essential to assess the risks associated with dividend stocks, including market volatility, ETF flows, and stock price fluctuations.
Investors are encouraged to conduct thorough research using reputable sources like Yahoo Finance and TipRanks.com to understand Fund metrics, dividend history, and fund flows. Additionally, considering ESG factors and governance data can provide insights into the Fund's investment approach and long-term sustainability.