A €9.1 Billion Dividend Fund Hovers Near Its Record — With a Mining Squeeze, a Pharma Megadeal, and a Fiber Vandal in the Mix
Published on 08/11/2026 at 21:32 | Redaktion boerse-global.de
The VanEck Morningstar Developed Markets Dividend Leaders UCITS ETF is once again knocking on the door of its 52-week high, and the stories inside its portfolio could hardly be more varied. From a Tasmanian smelter fighting for affordable power to a $10.9 billion pharmaceutical acquisition funded by fresh debt, the fund's 100 highest-yielding developed-market stocks are generating headlines on multiple fronts.
The fund last traded at €55.37, a mere 0.52 percent below the €55.66 peak reached on August 4. Year-to-date, the ETF has climbed 15.26 percent, with a 26.36 percent gain over the trailing twelve months. It currently sits 4.03 percent above its 50-day moving average of €53.22, underscoring the persistence of the recent uptrend.
Allianz's Record Quarter and the AI Bet
Among the fund's heavyweight positions, Allianz has delivered the kind of numbers that income investors like to see. The German insurer posted an operating profit of €4.9 billion in the second quarter of 2026, up 10.6 percent year-over-year, while total business volume reached €45.6 billion. Management reaffirmed its full-year target of €17.4 billion in operating earnings.
The asset management arm, which includes Pimco, proved the standout performer with internal operating income climbing 19.3 percent, buoyed by higher third-party assets and rising performance fees. Berenberg analysts reiterated their buy rating on August 10 with a price target of €684, pointing to the potential for a 20 percent return as the company's restructuring efforts take hold.
That restructuring comes with a price tag: Allianz has earmarked €1.3 billion to €1.5 billion through year-end, with a substantial portion directed toward artificial intelligence infrastructure. The payoff, according to Berenberg, may only fully materialize over the coming years.
Rio Tinto's Tasmanian Power Puzzle
Not every portfolio company is celebrating record earnings. Rio Tinto finds itself in a different kind of negotiation — one over electricity, not dividends. The miner has reached an in-principle agreement with Hydro Tasmania to extend the power contract for its Bell Bay aluminium smelter by twelve months, securing operations through December 2026 and protecting more than 550 direct jobs in the short term.
The longer-term picture is murkier. Talks over a new ten-year power agreement have hit a stumbling block, with an estimated gap of A$60 million per year separating what Rio Tinto considers economically viable from what Hydro Tasmania is offering. The Tasmanian government has already appealed to Canberra for assistance, though questions remain about whether the smelter would even qualify for the national green aluminium support program.
Despite the regional uncertainty, institutional interest in Rio Tinto remains robust — Arrowstreet Capital increased its stake by 170.8 percent in late 2025.
ExxonMobil's African Megaproject Takes Shape
Across the portfolio, ExxonMobil is advancing what could become its largest single investment ever. On August 10, the company issued a letter of intent on behalf of its Area 4 partners to the SMDC joint venture — which includes McDermott Energy Solutions — for engineering and procurement work on the first phase of the Rovuma LNG project in Mozambique.
A final investment decision is expected later in 2026. The facility is designed to include twelve modular liquefaction units with annual capacity of 18.6 million tonnes of LNG. Over a projected 30-year operating life, analysts estimate the project could generate around $150 billion in revenue for the Mozambican government and contribute roughly $11 billion annually to the country's GDP. First production is currently slated for 2031.
Verizon's Repair Job and Refinancing
Verizon Communications, holding a roughly 4.66 percent weight in the fund, spent the weekend dealing with a network outage in Southern California caused by vandalism to fiber-optic cables. Full service was restored by 7:30 p.m. Pacific Time on August 10, with limited customer impact.
In parallel, the telecom giant moved to optimize its capital structure, issuing subordinated notes maturing in 2057 and 2059 under a fixed-to-fixed structure. Proceeds are earmarked partly to refinance existing debt — a step toward managing leverage and preserving the dividend that makes the stock a natural fit for income-focused strategies.
AbbVie's $10 Billion War Chest
AbbVie is pressing ahead with its push into immunology and respiratory care. On August 11, the pharma company secured $10 billion through multiple tranches of senior notes to fund its $10.9 billion acquisition of Apogee Therapeutics. The deal centers on Apogee's pipeline of clinical candidates for inflammatory diseases, led by the drug candidate Zumilokibart.
AbbVie has already adjusted its financial guidance to account for financing costs, while its existing immunology franchise continues to perform. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and Apogee shareholder consent.
A Fund in Technical Health
With net assets of roughly €9.1 billion, the ETF maintains a physical replication approach across 100 high-yielding developed-market equities, with notable tilts toward financials and energy. The 14-day relative strength index stands at 65.2 — approaching overbought territory without undermining the prevailing uptrend — while 30-day volatility remains contained at 9.09 percent.
The coming months will test two very different narratives: whether Allianz's AI investments translate into sustained earnings power, and whether a funding solution emerges for Bell Bay before the twelve-month extension runs its course. For now, the fund's diversified income engine keeps humming.
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