VanEck’s €7.4bn Dividend Fund Gets an Irish Twin as Chevron’s Adjusted Profit Beats by 45%

VanEck splits its dividend fund family with new accumulating share class TDVX, offering automatic reinvestment and Irish tax benefits amid $24B global inflows.

Dividend investing is enjoying a renaissance. Global inflows into dividend-focused equity funds hit roughly $24 billion in the first quarter of 2026, and VanEck is capitalising on the momentum by expanding its product line. The asset manager has split its well-known dividend family, launching a new accumulating share class to cater to investors who prefer automatic reinvestment.

The VanEck Morningstar Developed Markets ex-US Dividend Leaders (TDVX) began trading on the London Stock Exchange at the end of April. The new fund complements the established TDIV vehicle, which is domiciled in the Netherlands. Regulatory restrictions there prevent the creation of an accumulating share class, so VanEck opted for a fresh start in Ireland. The Irish domicile offers more favourable tax treatment for international securities and, crucially, allows dividends to be automatically reinvested. The division of labour is now clear: TDIV distributes income, while TDVX accumulates it. Both carry a total expense ratio of 0.38 percent.

The established TDIV fund manages €7.4 billion in assets. Energy is a heavyweight in the portfolio, and Chevron recently grabbed attention with its first-quarter results. The oil major reported a 36 percent drop in net profit to $2.2 billion, a figure that looks alarming at first glance. However, one-off charges and legal provisions weighed heavily on the bottom line. On an adjusted basis, Chevron beat analyst expectations by a handsome 45.6 percent, with its core upstream and refining operations posting solid growth. Shareholders can expect a quarterly dividend of $1.78 per share, payable on 10 June.

The broader earnings season remains a stress test for the fund. The top ten holdings account for more than 35 percent of the portfolio, meaning any disappointment among these heavyweights hits performance directly. Pfizer reports on 5 May, Novo Nordisk follows on 6 May, and Allianz and Verizon are also on the calendar.

After earnings season, the next hurdle arrives in June. The underlying Morningstar index conducts its semi-annual rebalancing, and the criteria for staying in the index are strict. A company must have paid a dividend in the past twelve months, must not have cut its dividend per share over the past five years, and must have an expected payout ratio below 75 percent. Only those that clear all three hurdles remain in the running.

From the qualifying candidates, the index selects the 100 stocks with the highest dividend yields and weights them by absolute dividend amount. No single stock can account for more than 5 percent of the portfolio. Financials, energy and healthcare currently dominate the index, with Verizon, Pfizer and Allianz among the largest positions. The top ten names collectively represent more than 35 percent of fund assets.

The rebalancing could trigger significant portfolio shifts if any heavyweights fall through the net. The energy sector is under particular scrutiny, as volatile commodity prices squeeze payout ratios. The fund also applies strict sustainability screens, excluding companies involved in controversial activities or those that violate global standards.

Technically, the TDIV is trading at elevated levels. Its relative strength index stands at 67.5, suggesting a slightly overbought condition, while the price sits roughly 10 percent above its 200-day moving average. The June rebalancing will determine the portfolio’s future composition and could reshape the fund’s risk profile.