Why Now For U.S. Equity Income?

Franklin Templeton
4.58K Followers

Summary

  • US equities, as measured by the S&P 500 Index, have performed strongly so far in 2023.
  • In our analysis, there will likely be a mild US recession in 2024, and the Fed will keep rates elevated for a longer period of time than the market expects.
  • Even without variable dividends, and even if a recession happens in the United States, it is our view that companies’ payout ratios won’t be severely impacted and could still grow.

Abstract virtual financial graph illustration on blue background, financial and trading concept. 3D Rendering

Igor Kutyaev

By John Baldi, Portfolio Manager, ClearBridge Investments

Resilient US economy with narrow leadership in equities

Throughout 2023, investors expected that the United States would be in a recession and the US Federal Reserve (Fed) would begin to cut interest rates

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4.58K Followers
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,300 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.4 trillion in assets under management as of June 30, 2023. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

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