Access a Solid Portfolio of Dividend-growing Stocks
Director of Growth Equities, Senior Vice President and Senior Portfolio Manager
Dividends have historically been a key component of total returns from stocks, but over the last decade or so, many investors may have lost sight of the role dividend income can play in pursuing long-term investment goals.
Recent extreme market volatility is a potent reminder that regular dividend payments may help cushion any negative portfolio returns and provide investors with a potentially growing source of income.
Oppenheimer Rising Dividends Fund seeks to take advantage of these qualities by investing in companies that have reliably paid—and increased—their dividend in the past, and are in a position to continue to increase their dividend in the future.
The Fund invests primarily in stocks of larger companies (“large caps”), including a blend of growth stocks, whose earnings may grow faster than average, and value stocks—those the market may have undervalued. It aims to provide a growing stream of dividend income and the opportunity for share price appreciation, along with a degree of downside protection in turbulent markets. The Fund offers:
- The benefit of investing with OppenheimerFunds
- Historical outperformance of dividend-growing stocks with less risk
- A potentially growing income stream from high quality stocks
The Fund is managed by Neil M. McCarthy and Joseph Higgins, both of whom have over 28 years’ investment experience. They are members of the OppenheimerFunds Growth team, whose 17 seasoned professionals have amassed over 300 years’ collective investment experience.
Historical outperformance from dividend-growing stocks with less risk
Historically, dividend-growing stocks have offered investors a number of significant advantages, most notably outperformance with less risk. From 1972 through 2010, the best performers in the S&P 500 Index were dividend growers and initiators.1 As the chart below illustrates, stocks of companies that grew their dividend payments, such as those Rising Dividends Fund seeks to own, outpaced the alternatives shown—and did so with less risk.
A potentially growing income stream from high quality stocks
Rising Dividends Fund’s managers aim to invest in stocks of high quality, financially solid industry leaders that they believe are trading at a reasonable price.
In particular, the managers look for companies with a history of paying dividends and a likelihood of increasing their dividends in the future. The managers believe that such companies offer the greatest potential to deliver a growing income stream and capital appreciation. These qualities may help cushion returns in volatile markets, when investor demand often rises for income-producing, high quality investment opportunities.
- Speak with your financial advisor about investing in Oppenheimer Rising Dividends Fund
- Check out our 4- and 5-star Morningstar funds
1. Source of data: Ned Davis Research, 12/31/10.
Source of chart data: Ned Davis Research, 12/31/10. Based on equal-weighted geometric average of total return of dividend-paying and non-dividend-paying historical S&P 500 Index stocks, rebalanced annually. Uses annual dividends to identify dividend-paying stocks and changes on a calendar year basis. The performance shown represents the risk-return characteristics of each of the categories with annualized standard deviation (measure of risk) measured on the x-axis and average annualized return measured on the y-axis. Risk is represented by standard deviation, a statistical measure of performance fluctuations. Generally the higher the standard deviation, the greater the expected volatility of returns. It is calculated using historical period returns around a mean and cannot be used to predict or depict Fund performance. The returns indicated above are not the Fund’s returns. For performance of Oppenheimer Rising Dividends Fund, please go to www.oppenheimerfunds.com or call us at 1.800.CALL OPP (225.5677). Past performance does not guarantee future results.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
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