May be evidence of a resilient business model/product line
Franklin U.S. Rising Dividends Fund invests in companies with a track record of substantial and sustainable dividend growth. Corporations that grow their dividends tend to experience greater long-term stock price appreciation compared to firms that just maintain their dividends or don’t pay any at all.
This fund has a portfolio of equities of quality, dividend-growing U.S. companies. The portfolio has demonstrated that it can participate in market growth and protect investor capital against downside risk.
We seek to invest in the most promising companies with attractive valuations and those companies with long records of dividend increases and solid performance.
Franklin U.S. Rising Dividends Fund is actively managed as a core U.S. equities strategy for investors interested in U.S. exposure but concerned about volatility & timing uncertainty.
Manager Insights
U.S. Dividends Outlook: Where do we go from here? - Webinar Key Takeaways
Watch Portfolio Manager Nick Getaz explain how Franklin U.S. Rising Dividends Fund is managed to try to deliver better performance in different market environments.
A Distinct Stock Selection Process
Consistent Dividend Increases
Substantial Dividend Increases
Often a hallmark of ample and growing free cash flow
Reinvested Earnings for Future Growth
Potential source of long-term sustainable growth
Strong Balance Sheet
Low debt servicing cost may enable increased return of capital to shareholders
Attractive Price
‘Value Overlay’ makes us opportunistic/bargain hunters
Rising Dividends, Higher Risk-Adjusted Returns
Historically, equities of dividend-growing companies performed better with less risk.
The chart shows that the dividend growers delivered strong performance with less risk than the S&P 500 Index. This period featured multiple market cycles and downturns, including the Dot-Com collapse, Global Financial Crisis and “The Lost Decade,” the 10-year period ended in 2009 when U.S. equities (represented by the S&P 500 Index) had a near-zero return.
Performance data represents past performance, which does not guarantee future results.
Source: Ned Davis Research Group, Inc. Indexes are unmanaged, and one cannot invest directly in an index. Index returns do not reflect any fees, expenses or sales charges. Indexes represent the dividend- and non-dividend-paying stocks of the S&P 500 Index, which is calculated using monthly equal-weighed geometric averages of the total returns of all dividend-paying stocks and non-dividend-paying stocks. The S&P 500 Index is considered representative of the U.S. stock market and reruns do no reflect the deduction of fees or sales charges.
Managing Risk With Dividends
The fund has provided less volatility…
…and better downside protection than its benchmark and peers
Source: © 2025 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.