DON’s “portfolio effectively targets dividend yield without incurring too much risk. Although the fund doesn’t screen its holdings for profitability or dividend sustainability, a few dividend cuts across its portfolio shouldn’t significantly impact its performance because it is broadly diversified and skews toward larger, more-stable names,” said Morningstar.

DON’s largest sector allocation is consumer discretionary at 22.53% while real estate and industrials combine for 30.54%.

“Over the past decade through May 2018, the fund topped the mid-value category average and Russell Midcap Value Index by 3.0 and 1.9 percentage points, respectively, with lower risk,” said Morningstar.

Morningstar has a bronze rating on DON.

For more information on dividend strategies, visit our smart beta category.

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