DFAT's Dividend Surge: A Beacon of Steady Income in Turbulent Markets

The markets may be trembling, but one ETF is standing firm—and paying investors handsomely for their patience. The Dimensional U.S. Targeted Value ETF (DFAT) has just hiked its annualized dividend to $0.82 per share, marking a 5.4% year-over-year increase. This isn't a fluke—it's the latest proof that DFAT's deep-value strategy is delivering the goods. If you're hunting for income that doesn't skip a beat, this fund deserves a closer look.

The Numbers That Matter: A Disciplined Play for Value Hunters

Let's cut to the chase: DFAT isn't just keeping up with dividends—it's outpacing them. The June 23, 2025, declaration of $0.2444 per share maintains the fund's streak of quarterly payouts, while the March 25, 2025, dividend hike—a 6.8% jump from $0.73 to $0.78—showed DFAT's willingness to reward investors aggressively when opportunities arise. This isn't a “set it and forget it” approach. Dimensional's team is actively targeting deep-value equities with strong fundamentals, favoring companies trading below their intrinsic worth.

Why This Matters Now: Resilience in a Volatile World

In a market where fear and uncertainty dominate, DFAT's track record is a breath of fresh air. Despite six dividend decreases over the past three years, the fund has balanced adjustments with growth, achieving a 4.0% 1-year dividend growth rate. That consistency is no accident. By focusing on undervalued stocks with solid balance sheets and competitive advantages, DFAT sidesteps the hype and targets companies primed to rebound.

Take the June 24, 2025, announcement: another 3%-plus dividend boost, pushing the annualized rate to $0.82. This isn't just about cash flow—it's a signal that the fund's underlying holdings are thriving. And with a trailing 12-month yield of 1.5%, DFAT offers a sweet spot for income seekers who also want capital appreciation.

The Risks? Yes, They Exist—but So Does the Reward

No investment is without risk. The disclaimer is clear: past performance doesn't guarantee future results, and market volatility could shake things up. But here's why DFAT still shines: its disciplined approach ensures it's not chasing fads or overpriced assets. When value stocks falter, Dimensional's long-term focus gives the fund time to rebound—a strategy that's weathered downturns before.

Even the projected September 2025 ex-dividend date (tentatively set between September 17–19) reinforces the fund's predictable payout schedule. Investors can pencil in another distribution, though they should verify details with their broker—because nothing's set in stone until it's official.

Bottom Line: DFAT Deserves a Spot in Your Income Portfolio

If you're after dividends that grow steadily while capital stays intact, DFAT isn't just a play—it's a strategic must-have. The fund's focus on undervalued, fundamentally strong stocks gives it a cushion in rocky markets, and its track record of hiking payouts even during adjustments proves it's not playing games.

Action Plan: Treat DFAT as a core holding. Pair it with other income-producing assets, and let the dividends compound. Just remember—this isn't a get-rich-quick scheme. It's about patient, disciplined growth.

As for me? I'm buying.

Disclaimer: This article is for informational purposes only. Investors should conduct their own research, consult a financial advisor, and review DFAT's terms of use before making decisions. Past performance does not guarantee future results.