| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.2% | -0.3% | 8.2% |
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 8.2% | 7.6% | 1.7% | -5.4% | 22.8% | 6.3% |
The Madison Dividend Income Fund returned -0.2% in Q4 2025 and 8.3% for the full year, underperforming the S&P 500's 17.9% annual return. The managers attribute this underperformance to the continued dominance of the Magnificent Seven stocks, which comprised 38% of the S&P 500 by year-end and drove historic outperformance versus dividend stocks and equal-weight strategies. The fund maintains a defensive positioning through high-quality dividend stocks trading at attractive valuations. With the S&P 500 trading at historically expensive levels and dividend stocks at the high end of their relative yield ranges, the managers believe their portfolio is well-positioned for potential market correction. The fund's defensive characteristics include a 2.53% dividend yield, 6% average dividend growth, and 94% of holdings rated A- or better by S&P. The strategy aims to participate near fully in bull markets while limiting drawdowns during bear markets through conservative positioning in quality dividend-paying companies.
The Madison Dividend Income Fund seeks to provide income and attractive long-term returns by investing in high-quality, above-average dividend yield stocks that are historically cheap relative to the broader market, while maintaining defensive characteristics through strong balance sheets and sustainable competitive advantages.
The managers believe dividend stocks are on sale compared to both the S&P 500 and Russell 1000 Value indexes, with the fund positioned defensively through high-quality holdings with strong balance sheets to protect against potential market correction risks.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 20 2026 | 2025 Q4 | AAPL, AMZN, AVGO, BLK, CME, CVX, GOOGL, HON, JNJ, MDT, META, MS, MSFT, NEE, NVDA, TSLA, UNP, XOM | defensives, dividends, income, large cap, Quality, value | - | The fund focuses on high-quality, above-average dividend yield stocks with sustainable competitive advantages. Portfolio holdings increased dividends by 6% on average over the past year,… |
| Oct 14 2025 | 2025 Q3 | - | Artificial Intelligence, Defensive, dividends, inflation, valuation | - | The fund views dividend-paying stocks as historically cheap relative to the S&P 500, presenting a contrarian opportunity amid an AI-driven rally. It warns of excessive… |
| Jul 15 2025 | 2025 Q2 | - | dividends, downside protection, income, Quality, valuation | - | The letter highlights dividend-paying equities as unusually attractive due to historically wide valuation gaps versus growth stocks. Management argues that high-quality dividend stocks offer both… |
| Mar 31 2025 | 2025 Q1 | HON | - | - | - |
| Dec 31 2024 | 2024 Q4 | ROK, TEL | - | - | - |
| Sep 30 2024 | 2024 Q3 | HON | - | - | - |
| Jul 17 2024 | 2024 Q2 | - | - | - | - |
| May 2 2024 | 2024 Q1 | XOM | - | - | - |
| Jan 14 2024 | 2023 Q4 | - | - | - | - |
| Oct 15 2023 | 2023 Q3 | - | - | - | - |
| Dec 7 2023 | 2023 Q2 | - | - | - | - |
| Apr 14 2023 | 2023 Q1 | UPS, USB | - | - | - |
| Dec 31 2022 | 2022 Q4 | CVX | - | - | - |
| Oct 25 2022 | 2022 Q3 | MS | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
DividendsJapanese companies paid record dividends of ¥18 trillion for fiscal year ending March 2025, a 13.8% year-over-year increase. Many major firms have adopted progressive dividend policies guaranteeing dividends will never be cut, only maintained or increased. |
Progressive Dividend Record Payouts Shareholder Returns Yield Growth |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
ValueManager emphasizes investing in controlled companies trading at significant discounts to NAV, with European holding companies showing discounts of 30-68%. The strategy focuses on securities mispricing where real value exists, contrasting with overvalued technology stocks. |
Discounts NAV Mispricing Undervalued Controlled | |
| 2025 Q3 |
Dividend Investing |
|
| 2025 Q2 |
DividendsJapanese companies paid record dividends of ¥18 trillion for fiscal year ending March 2025, a 13.8% year-over-year increase. Many major firms have adopted progressive dividend policies guaranteeing dividends will never be cut, only maintained or increased. |
Progressive Dividend Record Payouts Shareholder Returns Yield Growth |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| AVGO | The primary contributors to its performance were our exposures to Broadcom |
| BLK | We exited our positions in Alphabet, BlackRock and Tokyo Electron as their stock prices had reached levels in excess of their intrinsic value. |
| CME | Additionally, while CME is a great company and has been an excellent investment for our portfolio, it was at the high end of fair value, and we needed to make room for a new position as the portfolio was at out 20 stock holdings limit. |
| CVX | In October, we trimmed Chevron (CVX) following the close of its Hess (HES) acquisition. Chevron now derives significant earnings from a Kazakhstani oilfield whose sole link to the market is a 1,000 mile pipeline through Russia—not a risk we want in this portfolio. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| HON | Honeywell is a US multinational leader in aerospace and industrial automation that is simplifying its business. Following the separation of its advanced materials business in late 2025, Honeywell's aerospace division will spin off in 2026. |
| JNJ | During the quarter, we switched out of a long-held position in Johnson & Johnson into a new holding in Merck. |
| MDT | These purchases were funded through trims to medical device company Medtronic |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MS | During the quarter, the Fund invested in Morgan Stanley, a leading global investment bank and wealth management firm. Morgan Stanley has successfully diversified its business beyond cyclical banking and trading fees into more recurring wealth and investment management. These businesses collectively oversee $9.3 trillion in client assets that generate predictable, capital-light revenue that grows from inflows and market appreciation. |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NEE | On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center, a 600-megawatt nuclear facility that had been shut down in 2020. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| TSLA | Under the previous system, companies that produced only electric vehicles—most notably Tesla—generated large quantities of credits that could then be sold to manufacturers falling short of their EV production targets, allowing them to avoid regulatory penalties. |
| UNP | Union Pacific, the largest freight rail operator in the western United States, has announced plans to merge with Norfolk Southern, one of its major eastern counterparts. If approved, the merger would create the first coast-to-coast rail network in the U.S. |
| XOM | BAC, JNJ, JPM, and XOM were held in Miller/Howard portfolios as of December 31, 2025. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
