FDL - Investing Without Conviction: Why FDL Can Be Frustrating

• The Morningstar Dividend Leaders Index has a habit of buying when it should be selling, and selling when it should be buying.
• In June 2020, it dropped all its Energy holdings at fire sale prices, only to buy them back again this June after the sector had recovered.
• The Index has solid screens, but FDL is potentially flawed by its high turnover, not allowing its deep-value plays to realize their potential.
• FDL and its 4.47% forward yield could work for certain investors if they're willing to accept low revenue and earnings growth rates and below-average cash to debt positions.

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