Adams Diversified Equity Fund Announces Strong 2024 Performance

Adams Diversified Equity Fund, Inc. (NYSE: ADX) has announced its investment returns for 2024, showcasing a robust performance in a year marked by increased volatility due to the presidential election. The fund's total return on net asset value (NAV) for the year was 23.6%, with dividends and capital gains reinvested. This figure, while slightly below the S&P 500 Index's 25.0% return, outperformed the Morningstar U.S. Large Blend Category's 22.7% return. Notably, the fund's market price return for the period was an impressive 28.1%.

The fund distributed $2.50 per share in income dividends and realized capital gain distributions to shareholders in 2024, resulting in an annual distribution rate of 10.9% on net asset value. This rate significantly exceeded the fund's new commitment, adopted mid-year, to annually distribute 8% of NAV. Jim Haynie, CEO of Adams Funds, expressed satisfaction with the fund's performance, stating, "In a year of increased volatility related to the presidential election, we were pleased to outperform our peers in 2024 and distribute 10.9% of NAV to shareholders, significantly more than our new commitment adopted mid-year to annually distribute 8% of NAV."



The fund's net asset value at the end of 2024 was $2,662,523,552, compared with $2,550,393,350 at the end of 2023. The number of shares outstanding decreased from 124,051,639 to 117,585,976, and the net asset value per share increased from $20.56 to $22.64.



The fund's top equity portfolio holdings as of December 31, 2024, included Apple Inc. (8.0%), Microsoft Corporation (7.1%), NVIDIA Corporation (6.9%), Amazon.com, Inc. (4.8%), Alphabet Inc. Class A (3.9%), Meta Platforms, Inc. Class A (2.8%), Broadcom Inc. (2.5%), Adams Natural Resources Fund, Inc. (1.9%), JP Morgan Chase & Co. (1.9%), and Tesla, Inc. (1.8%). These holdings accounted for 41.6% of the fund's net assets.



The fund's sector weightings as of December 31, 2024, were led by Information Technology (32.4%), followed by Financials (13.4%), Consumer Discretionary (11.4%), Health Care (9.9%), Communication Services (9.3%), Industrials (7.8%), Consumer Staples (5.7%), Energy (3.5%), Utilities (2.2%), Real Estate (2.0%), and Materials (1.7%).



Adams Diversified Equity Fund's strong performance in 2024 can be attributed to several key factors. The fund's actively managed approach allowed it to capitalize on market opportunities and make strategic investments in high-growth sectors. The fund's overweight in technology and financials provided diversification benefits and captured the advantages of the higher interest rate environment. Additionally, the fund's commitment to paying a minimum annual distribution rate of 8% of NAV, and its ability to exceed this target by distributing 10.9% of NAV in 2024, attracted income-focused investors and contributed to the fund's overall performance.

Looking ahead, Adams Diversified Equity Fund's ability to outperform its peers while maintaining an elevated distribution rate positions it favorably for income-focused investors in 2025, particularly given the uncertain interest rate environment and election-year dynamics. The fund's strategic positioning in 2024, with a focus on growth-oriented sectors, paid off in the AI-driven rally of 2024, and its long-term track record of solid performance suggests that it will continue to be a strong choice for investors seeking a balance of growth and income.