Rising
Dividend

Potential for both equity Growth and increasing Income

Strategy Objective

The strategy seeks to outperform the S&P 500 Index over a full-market cycle and potentially offer investors a growing income stream over time.

Approach

The strategy utilizes a relative value approach, investing in high-quality companies which are not only expected to pay dividends, but are also focused on growing their distributions to shareholders over time.

Our investment strategy is total return oriented, focusing on companies that display many of the following characteristics:

    • Pricing power that translates to the bottom-line
    • Rising and / or above average return on invested capital (ROIC) or return on equity (ROE) relative to industry peers
    • Cash-flow as it relates to a company’s free cash-flow generation, usage, and the ability of a company to sustain and /or grow those cash-flows over time
    • Low-to-average cash-flow payout ratio relative to industry peers
    • Management that demonstrates willingness to return cash to shareholders
    • Strong credit profile

 

Differentiating Characteristics

Focus on Income Growth, Not Just Yield

  • In our view, pure-yield focused strategies may overlook such opportunities because capital appreciation is compressing the yield
  • Dividend growers historically have lower volatility than the broader market*

Research Intensive Investment Process

  • The team’s fundamental, bottom-up research focuses on a company’s generation, usage, growth, sustainability, and protection of its cash-flows
  • Maintains a high-quality, US large-cap focus

In-Depth Sector Specialization & Experience

  • Our experience in analyzing operational, financial, and regulatory factors within the broad equity income universe is bolstered by our sector / industry, and country expertise

*As of 6/30/2016. Source for data: Ned Davis Research, Inc. There is no guarantee these objectives will be met. The views expressed herein are those of Jennison investment professionals at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior notice, and should not be considered investment advice

Key Characteristics

Benchmark: S&P 500 Index
Number of Holdings: Typically 60 – 80
Strategy Inception: March 2014
Market Cap: All-Cap
Turnover: 50% – 80% under normal market conditions

Investment Team

Our Rising Dividend team is a part of Jennison’s Income & Infrastructure investment suite which also includes our Equity Income, Global Infrastructure, MLP, and Utility strategies.

The investment teams’ extensive experience within the utility and telecommunication sectors, which has historically been two of the higher dividend-yielding sectors, is complemented by our MLP / midstream energy infrastructure experience. In addition, the investment team leverages the firm’s internal research analysts where there is constant discussion, debate, and sharing of ideas across the suite and the broader firm.

 

Meet the Team

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.
The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.