Prudential Investments has launched the Prudential Jennison Rising Dividend Fund (NASDAQ:PJDAX), a fund that offers investors the opportunity to generate capital appreciation and income by investing in companies with the potential to generate high free cash flow that can be returned to investors in the form of growing dividend payouts. Prudential Investments is the mutual fund business of Prudential Financial, Inc. (NYSE:PRU), offering a range of open and closed end funds.
The fund will invest primarily in U.S.-listed large cap equities with a focus on stocks of companies with a history of consistently paying and increasing their dividends. The fund will be diversified across sectors and industries. The fund uses the S&P 500 Index as its benchmark index.
“Stocks with growing dividends have historically demonstrated attractive risk-return profiles,” said Stuart Parker, president of Prudential Investments. “This fund may represent a terrific opportunity for investors seeking growth with potentially lower risk compared to other asset categories.”
The fund is subadvised by Jennison Associates’ Income and Infrastructure team which uses a bottom-up, fundamental researched-based security selection process. The portfolio managers are Shaun Hong and Bobby Edemeka, who manage Jennison’s utility, equity income, global infrastructure and MLP strategies.
“Over the long term, dividend growing stocks have delivered very competitive historical returns with generally lower volatility than the broader market,” said Hong. “The team’s deep experience in identifying attractively valued companies whose fundamentals indicate the potential ability to generate attractive, sustainable yields should help deliver capital appreciation with the potential for a growing income stream over time,” added Edemeka.
The fund offers A (PJDAX), C (PJDCX) and Z (PJDZX) share classes, with the latter only being offered to a limited group of investors.
Prudential Investments is the mutual fund business of Prudential Financial, Inc., offering a range of open and closed end funds. Please visit
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Founded in 1969, Jennison Associates is a wholly owned subsidiary of Prudential Financial and manages many of Prudential Financial’s equity funds. Jennison is one of the nation’s leading managers of growth, value, blend and specialty strategies.