The UK income fund offering dividend growth amid market volatility

Funds to Watch: Franklin UK Rising Dividends fund

As UK Equity Income funds continue to struggle with the sector's demanding yield criteria, Colin Morton, manager of the £26m Franklin UK Rising Dividends fund, says his product offers an alternative for investors willing to exchange some initial income for medium- to long-term dividend growth from a wider universe of companies.

Unlike Morton's £179m UK Equity Income fund, the UK Rising Dividends fund sits in the IA UK All Companies sector. Instead of focusing on a minimum yield target, the fund seeks to identify companies which have increased their dividends in eight of the last ten years. Additionally, potential holdings must maintain their dividends during years in which they have not increased them, and reinvest at least one third of their profits in future dividend growth throughout any given period. "With UK Rising Dividends, the dividends are sourced from a wider variety of companies [than the UK Eq...