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Soumya Eswaran
Wed, July 22, 2026 astatine 8:38 AM CDT 4 min read
Madison Dividend Income Fund, managed by Madison Funds, released its Q2 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The Fund aims to make income and superior appreciation from a high-quality, high-dividend portfolio. The Fund (class I) returned +1.8% successful the 2nd quarter, which compared to the S&P 500 Index, Russell 1000 Value Index, and Lipper Equity Income adjacent radical returns of +15.2%, +13.9%, and +9.7%, respectively. YTD, the Fund returned +7.7%, compared with +10.2%, +16.3%, and +9.9% for the indexes, respectively. The Technology assemblage performed strongly, portion Energy lagged. The steadfast sees the Energy sector's diminution arsenic an accidental to bargain undervalued vigor stocks with bully dividends. With S&P 500 valuations astatine all-time highs, risks see marketplace correction and aggregate contraction. The Fund aims to mitigate these risks by maintaining a diversified premix of high-quality, high-yield stocks successful undervalued sectors. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.
In its Q2 2026 capitalist letter, Madison Dividend Income Fund highlighted ExxonMobil Holdings Corporation (NYSE:XOM). ExxonMobil Holdings Corporation (NYSE:XOM) is simply a starring vigor institution that engages successful the exploration and accumulation of crude lipid and earthy gas. On July 21, 2026, ExxonMobil Holdings Corporation (NYSE:XOM) closed astatine $151.71 per share, reflecting a marketplace capitalization of $628.83 billion. ExxonMobil Holdings Corporation (NYSE:XOM) posted a one-month instrumentality of 10.82%, portion its shares gained 38.01% implicit the past 52 weeks.
Madison Dividend Income Fund stated the pursuing regarding ExxonMobil Holdings Corporation (NYSE:XOM) successful its Q2 2026 capitalist update:
"One of the fund's apical holdings is ExxonMobil Holdings Corporation (NYSE:XOM). XOM is the world's premier integrated lipid and state company. It has charismatic upstream exploration and accumulation assets successful the low-cost Permian Basin and a unique, ultra-low-cost maturation accidental successful Guyana, on with processing liquid earthy state (LNG) assets for information centers. The institution has a downstream Product Solutions conception that refines energy, chemic and specialty products. Its low-cost position, diversified plus base, scale, integrated assets and beardown equilibrium expanse supply a sustainable competitory advantage, successful our view.
XOM's five-year "Plan to 2030" provides a model for higher maturation and important superior returns. It targets 65% of upstream accumulation from its "advantaged" assets by 2030, up from 59% today, which volition thrust a favorable premix displacement and grow margins. The institution thinks it tin adhd $25 cardinal successful net and $35 cardinal successful currency travel portion keeping superior expenditures level successful the $22-27 cardinal range.
Another crushed we similar XOM is due to the fact that it has a beardown equilibrium expanse and is simply a dividend compounder. The institution has an AA- rated equilibrium expanse by S&P with beardown currency travel procreation and way grounds of 43 consecutive years of dividend increases. XOM paid $150 cardinal successful dividends from 2021-2025, which is much distributed currency than each but 5 different S&P 500 stocks. At 4th end, XOM had an implicit dividend output of 3% and a comparative dividend output versus the S&P 500 of 2.2x."
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