“Small disciplines repeated with consistency every day lead to great achievements gained slowly over time.”
–John C. Maxwell
The first half of 2025 has kept us all on our toes, and with the release of second-quarter earnings for many of the major publicly traded companies and tariff turmoil, it is not showing signs of slowing down.
But there is something to be said about the stocks that have proven themselves to dish out dividends reliably, even in the age where AI and new technology stocks are the darlings of the market.
I’ve always been a big proponent of consistently showing up for both myself and all those I care about. So today’s featured exchange-traded fund (ETF) is one that shares that same value in rewarding consistency, as it tracks the performance of the 100 highest-yielding stocks that have a consistent record of dividend payment and can sustain those payments.
First Trust Morningstar Dividend Leaders Index Fund (FDL) is an Equity Income exchange-traded fund with net assets of $5.41 billion and an expense ratio of 0.45%.
FDL has a year-to-date return of 9% and a one-year return of 10.9%. The fund’s top 10 holdings, which make up over 55% of total assets, are Exxon Mobil Corporation (NYSE: XOM), Verizon Communications Inc. (NYSE: VZ), Chevron Corporation (NYSE: CVX), Pfizer Inc. (NYSE: PFE), Merk & Co., Inc. (NYSE: MRK), PepsiCo, Inc. (NYSE: PEP), Altria Group, Inc. (NYSE: MO), Comcast Corporation (NYSE: CMCSA), United Parcel Service, Inc. (NYSE: UPS) and Bristol-Myers Squibb Company (NYSE: BMY).
Investors get the opportunity to invest in large household names but can avoid having to pick just one (or a few), since FDL provides exposure to an array of reliable companies.
The fund features stocks from many sectors of the market, including energy, health care, financial services, consumer defensive, communication services, utilities, consumer cyclical and industrials.
Courtesy of www.stockcharts.com.
Looking at the chart above, we can see that FDL has rebounded after a clear dip this spring, moving higher this summer.
While consistency in performance is something we love to see, it’s important for investors to note the inherent risk that comes with investing. Investors should always do their due diligence before adding any stock, fund or ETF to their portfolio.
As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.
