DURA seeks to provide exposure to high dividend yielding U.S. companies with strong financial health and attractive valuations, according to Morningstar. DURA seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Morningstar® US Dividend Valuation IndexSM. The Index leverages Morningstar’s forward-looking fair value assessments as well as its proprietary quantitative Distance to Default score, which helps target financially strong companies with a higher probability of sustaining dividend payments.
MOAT currently allocates about 65% of its combined weight to the healthcare, consumer staples and technology sectors. Those groups are home to some of the strongest balance sheets and most impressive dividend growth track records in Corporate America.
“The wider the moat, the less likely a subsequent dividend cut. No-moat companies are far more likely to experience dividend cuts than narrow-moat companies—and narrow-moat companies are more likely to cut dividends than wide-moat companies,” according to Morningstar.
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