"The WisdomTree U.S. MidCap Dividend Fund ( NYSEARCA:DON) generates income by holding a diversified portfolio of mid-cap dividend-paying stocks. With $3.7 billion in assets and a 2.45% yield, DON collects dividends from approximately 400 mid-cap companies and distributes them monthly to investors. The fund focuses on mid-cap value stocks with proven dividend track records, creating a middle ground between large-cap stability and small-cap growth potential."
"DON's diversification is evident in its holdings: no single position exceeds 1.2% of the portfolio. The top five holdings demonstrate varied dividend sustainability profiles. Best Buy ( NYSE:BBY) (1.20% weighting) yields 5.66% but shows a concerning 125% earnings payout ratio, meaning dividends exceed current profits. However, the retailer's 22.5% return on equity and 90.6% institutional ownership provide some cushion."
The fund holds roughly 400 mid-cap dividend-paying stocks and manages $3.7 billion in assets while distributing income monthly at a 2.45% yield. Portfolio construction emphasizes mid-cap value names positioned between large-cap stability and small-cap growth potential, avoiding large-cap stretched multiples. No single position exceeds 1.2% of the fund, which limits the impact of individual dividend cuts. Top holdings show mixed dividend sustainability: Best Buy and Franklin Resources display high payout ratios, Viatris has negative earnings, while Omnicom and American Financial Group show healthy payout ratios. Sector exposure tilts toward Financials and Industrials, with limited Technology weighting.
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