D - The First Trust Morningstar Dividend Leaders Index Fund: A High-Yielding Value Play With Solid Dividend Fundamentals

• FDL tracks the Morningstar Dividend Leaders Index, which includes 100 of the highest-yielding U.S. stocks that can sustain their dividend payments, according to Morningstar's screening method.
• Its distributions have grown substantially in the last four years, and my analysis of the fund's fundamental metrics shows that this is likely to continue.
• High-yield dividend investors are cautioned that their strategy is more likely to result in lower total returns despite the belief that high dividends act as a cushion to downside risk.
• There is an added risk that FDL may dispose of high-potential value stocks too early, as it did last June with all of its oil and gas stocks.

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