"When retirement income depends on dividends that actually arrive, sector concentration stops being a flaw and starts looking like conviction. The First Trust Morningstar Dividend Leaders Index Fund ( NYSEARCA:FDL) dedicates 26% of its portfolio to energy stocks at a moment when the Trump administration has announced indefinite control over Venezuelan oil sales. That timing matters for retirees seeking both income and appreciation in 2026."
"FDL delivers a 4.35% yield through concentrated positions in high-dividend blue chips. Exxon Mobil and Chevron alone represent 18.5% of the fund, with energy claiming over a quarter of total assets. Compare that to Vanguard High Dividend Yield ETF ( NYSEARCA:VYM), where energy accounts for just 8.3% and no single sector exceeds 21%. FDL's 0.43% expense ratio sits between passive and active strategies."
"Energy Secretary Chris Wright confirmed January 7 that the U.S. will market Venezuelan crude indefinitely, with proceeds settling in U.S.-controlled accounts. Venezuela holds the world's largest proven oil reserves but currently produces only 800,000 barrels daily. The administration's plan redirects this supply from China to American markets and invites U.S. oil companies to rebuild Venezuelan infrastructure. For FDL's top holdings, this creates multiple tailwinds."
FDL concentrates 26% of assets in energy and yields 4.35% through high-dividend blue chips, with Exxon Mobil and Chevron accounting for 18.5% of the fund. The fund's expense ratio is 0.43% and paid $1.79 per share in 2025, a 5.6% increase, with quarterly payments varying from $0.36 to $0.55. Over five years the fund returned 91%, outpacing the S&P 500's 84% while producing higher income. U.S. policy to market Venezuelan crude indefinitely, redirecting supply from China and inviting U.S. companies to rebuild infrastructure, creates tailwinds for major oil producers and supports oil prices.
Read at 24/7 Wall St.
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