Month End Recap:
For the month of November, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) gained 0.4% versus a decline of -0.3% for the S&P 500 Total Return Index (Index)1. From a sector standpoint Healthcare, Communication Services, and Materials were relative outperformers, whereas Information Technology, Consumer Discretionary, and Industrials underperformed.
Top performers in the month of November were McKesson (MCK), Broadcom (AVGO), and TJX Companies (TJX)2. MCK performed well as its quarterly results showed continued strength across its core pharmaceutical distribution and specialty services businesses. Higher prescription volumes and strong performance in specialty and oncology supported solid earnings growth, while operating efficiency and scale helped sustain margins. Management raised full-year guidance, reflecting confidence in utilization trends and the durability of demand across key channels. AVGO continued its momentum since delivering strong results, supported by rapid growth in its AI semiconductor business and expanding demand across cloud and hyperscale customers. AI-related revenue continued to scale quickly, helped by increased adoption of custom accelerators and networking products, while the broader semiconductor portfolio showed signs of stabilization. The company highlighted a sizable, multi-year backlog and the addition of a major new AI customer, reinforcing confidence in forward visibility and strengthening sentiment around long-term growth prospects. Its infrastructure software segment remained resilient with growing subscription adoption, providing a steady earnings base. With demand accelerating across AI compute and high-performance networking, and with product ramps extending into next year, the company entered the final stretch of the year with increasing confidence in sustained growth and cash-flow generation. TJX rerated higher as earnings demonstrated strong comparable sales momentum driven by healthy traffic and higher average basket size. The off-price model continued to resonate with value-focused consumers across income groups, supporting market share gains during the early holiday period. Gross margins improved as lower freight costs, better merchandise mix, and disciplined inventory management drove operating leverage. With a favourable buying environment, strong value perception, and consistent execution across banners, the company maintained solid earnings visibility and cash flow generation.
During the month of November, the Fund initiated a position in Howmet Aerospace (HWM). HWM is a leading aerospace supplier of engineered components and fastening systems with deep exposure to commercial aircraft programs. The company is benefiting from rising production rates across key platforms, driving strong volume growth and improved operating leverage. Margins are expanding as the widebody mix improves and productivity gains materialize from newer hires moving down the learning curve. Together, these dynamics support a favourable earnings trajectory as aerospace build rates continue to normalize.
The Fund held a 16.5% cash weighting at month-end. While we remain mindful of the macro environment, the Fund employs a bottom-up investment approach designed to seek out attractive investment opportunities in any market. Over the long run, given its unique momentum-driven investment approach and focus on well-managed, dividend growth companies, we believe UDA is well-positioned to provide strong performance by way of both attractive regular monthly distributions and long-term capital appreciation potential. We expect that our approach to dividend growth investing should continue to provide a means of generating compelling risk-adjusted returns for our investors over the long term.
1All returns (for the fund, individual stocks and sectors) are in total return, Canadian dollar terms. All stock returns represent performance for the full period noted. All fund returns are in respect of Series F.
Standard performance as at November 28, 2025:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: -3.6%, 3 year: 8.3%, 5 year: 8.9%, 10 year: 9.4%, Since Inception (June 19, 2015): 8.7%.
S&P500 Total Return Index: 1 Year: 14.5%, 3 year: 21.7%, 5 year:17.0%, 10 year: 15.2%, Since Inception (June 19, 2015): 15.3%.
2Actual investments, first purchased: MCK 3/11/2025, AVGO 11/15/2022, TJX 4/21/2025.
All data is as of November 28, 2025 sourced from Morningstar Direct or S&P Capital IQ, unless otherwise indicated. Fund returns are from FundData. UDA, Index total return numbers, sector returns and individual stocks returns are in CAD terms. The Fund was first offered to the public as a closed-end investment since May 28, 2015. Effective November 15, 2018 the Fund was converted into an open-end mutual fund such that all units held were redesignated as Series F units. Performance prior to the conversion date would have differed had the Fund been subject to the same investment restrictions and practices of the current open-end mutual fund.
The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. The payment of distributions should not be confused with a fund’s performance, rate of return or yield. If distributions paid are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund, are taxable in your hands in the year they are paid. Your adjusted cost base (“ACB”) will be reduced by the amount of any returns of capital and should your ACB fall below zero, you will have to pay capital gains tax on the amount below zero.
Publication date: December 17, 2025.