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Equity

ClearBridge Dividend Strategy ESG Portfolios

Year to Date Returns (Net)
8.84%
As of 12/31/2025
Year to Date Returns (Pure Gross)
12.09%

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Overview

Product Facts

Strategy Description

ClearBridge Dividend Strategy ESG Portfolios invest primarily in dividend-paying stocks that offer the potential for income growth and capital appreciation over time. The investment team believes that companies that exhibit market leadership, coupled with solid balance sheets and strong dividend profiles, are attractive investment candidates for the long-term investor.

Benchmark
S&P 500 Index
Inception Date
02/28/2013
Asset Class
Equity
Number of IssuersAs of 01/31/2026 (Updated Monthly)
52

Average Annual Total Returns

View performance section for additional info As of 12/31/2025
  • 8.84%1 Year
  • 11.72%3 Years
  • 8.16%5 Years
  • 9.14%10 Years
  • 8.58%Since Inception
    02/28/2013

Performance data quoted represents past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the figures shown.

Top Sectors

View portfolio section for additional info

As of 12/31/2025 % of Total (Updated Quarterly)

Information Technology14.83%
Financials14.43%
Health Care12.06%
Industrials9.47%
Consumer Staples8.50%

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Manager and Commentary

About the Team

ClearBridge Investments

ClearBridge Investments is an active equity manager offering a broad range of strategies across global developed and emerging markets, local markets, and income. ClearBridge manages diversified, high-conviction portfolios through collaborative fundamental research to meet the needs of some of the world's largest asset owners and financial intermediary platforms. We invest as long-term, risk-aware business owners and seek to deliver consistency of process and performance for our clients through market cycles. A focus on durability drives everything we do; from the business models of the companies we own, to the holding periods of our portfolios, to the stability and longevity of our investment professionals.

Commentary Highlights

12/31/2025
  • Markets:  2025 marked the third consecutive year of this AI-driven cycle. The market-cap-weighted S&P 500 Index rose 17.9% in the year, while the equal-weighted S&P 500 Index gained just 11.4%. The Magnificent Seven, this market’s nucleus, rose 24.9% in 2025. While performance comparisons will vary based on the time period, cap-weighted and equal-weighted indexes have produced similar returns over long periods of time.
  • Contributors:  Stock selection in consumer staples and utilities, a health care overweight and IT underweight proved beneficial.
  • Detractors:  Stock selection in the communication services, IT, energy and real estate sectors detracted.
  • Outlook:  We anticipate the AI debate will carry over in 2026 and we will continue to participate in AI in a measured and disciplined way. Yet, as other investors continue to myopically focus on AI, we expect to find additional idiosyncratic opportunities in overlooked corners of the market. We believe these seeds will bear fruit in the years to come.
ClearBridge Investments logo
[John Baldis avatar]

Managed Strategy Since 2013

[Michael Clarfelds avatar]

Managed Strategy Since 2013

[Diane Keadys avatar]

Managed Strategy Since 2013

Portfolio Manager Profile
Years of Experience
Manager Location

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Composite Performance

Calendar Year Returns

As of 12/31/2025

Chart

Bar chart with 3 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from -18.11 to 31.49.
End of interactive chart.
ClearBridge Dividend Strategy ESG Portfolios - Net (%)
ClearBridge Dividend Strategy ESG Portfolios - Pure Gross (%)
S&P 500 Index (%)

The strategy returns shown are preliminary composite returns, subject to future revision (downward or upward). Past performance is not a guarantee of future results. An investment in this strategy can lose value.  

Performance data represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares. Periods less than one year are not annualized. Performance results are for the composite which includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the composite's investment strategy. Composite returns are stated in U.S. dollars and assume reinvestment of any dividends, interest income, capital gains, or other earnings. The composite may include account(s) that are gross of fees and pure gross of fees. “Pure” gross-of-fee returns do not reflect the deduction of any expenses, including transaction costs. A traditional (or "true") gross-of-fee return reflects performance after the reduction of transaction costs but before the reduction of the investment advisory fee. The gross-of-fee return may include a blend of "true" gross-of-fee returns for non-wrap accounts and "pure” gross-of-fee returns for wrap accounts. Net-of-fee returns is reduced by a model “wrap fee” (3.0% is the maximum anticipated wrap fee for equity and balanced portfolios) which includes trading expenses as well as investment management, administrative and custodial fees. The model wrap fee used represents the highest anticipated wrap fee applicable to the strategy. Actual fees and account minimums may vary.  

For fee schedules, contact your financial professional, or if you enter into an agreement directly with Franklin Templeton Private Portfolio Group, LLC (“FTPPG”), refer to FTPPG’s Form ADV Part 2A disclosure document. Management and performance of individual accounts may vary for reasons that include the existence of different implementation practices and model requirements in different investment programs.   

To obtain specific information on available products and services or a GIPS® Report, contact your Franklin Templeton separately managed account sales team at (800) DIAL BEN/342-5236. ClearBridge Investments, LLC, Martin Currie, Royce Investment Partners, and Western Asset Management Company, LLC claim compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. 

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Portfolio

Positions

As of 12/31/2025 (Updated Monthly)

Number of Issuers
Portfolio
53
Benchmark
503

Portfolio Statistics

As of 12/31/2025 (Updated Monthly)

Weighted Average Market Capitalization (USD)
Portfolio
$485.30 Billion
Benchmark
$1,362.85 Billion
Estimated 3-5 Year EPS Growth
Portfolio
7.67%
Benchmark
12.93%
Price to Book
Portfolio
6.92x
Benchmark
8.02x
Price to Earnings (12-Month Forward)
Portfolio
19.55x
Benchmark
24.68x
Dividend Yield 1
Portfolio
2.18%
Benchmark
1.13%
Median Market Cap (USD)
Portfolio
$108.95 Billion
Benchmark
$382.81 Billion

Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors.

Sector Allocation

As of 12/31/2025 % of Total (Updated Quarterly)

Sector % of Total
Benchmark
Information Technology
14.83%34.43%
Financials
14.43%13.40%
Health Care
12.06%9.59%
Industrials
9.47%8.16%
Consumer Staples
8.50%4.71%
Communication Services
8.44%10.58%
Materials
8.34%1.83%
Energy
6.46%2.81%
Utilities
5.63%2.25%
Real Estate
4.81%1.83%
Consumer Discretionary
3.98%10.41%
Cash & Cash Equivalents
3.06%

Chart

Bar chart with 2 data series.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 0 to 34.42688.
End of interactive chart.

Portfolio characteristics are based on a model portfolio, not an actual client account. The model portfolio is a hypothetical portfolio whereby the portfolio characteristics are based on simulated trading and account activity of a client account invested in this strategy. The model portfolio assumes no withdrawals, contributions or client-imposed restrictions. Portfolio characteristics of individual client accounts may differ from those of the model portfolio as a result of account size, client-imposed restrictions, the timing of client investments, market conditions, contributions, withdrawals and other factors.

Top Equity Issuers

As of 12/31/2025 (Updated Quarterly)

Holdings Portfolio
Microsoft Corp
3.91%
Broadcom Inc
3.73%
Williams Cos Inc/The
3.63%
Nestle SA
3.25%
Alphabet Inc
3.21%
Becton Dickinson & Co
2.72%
Texas Instruments Inc
2.62%
Unilever PLC
2.47%
JPMorgan Chase & Co
2.43%
Air Products and Chemicals Inc
2.40%

 

Bar chart with 10 bars.
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 2.39856 to 3.91328.
End of interactive chart.
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Documents

Product Documents
Name Download Add to Cart
Factsheet - ClearBridge Dividend Strategy ESG PortfoliosDownload Document
Product Commentary - ClearBridge Dividend Strategy ESG PortfoliosDownload Document
FTPPG Regulatory DisclosuresMailed hardcopies unavailable.Download Document
Pitchbook - ClearBridge Dividend Strategy ESG PortfoliosDownload Document

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Risks

All investments involve risks, including possible loss of principal. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. The managers’ environmental, social and governance (ESG) strategies may limit the types and number of investments available and, as a result, may forgo favorable market opportunities or underperform strategies that are not subject to such criteria. There is no guarantee that the strategy's ESG directives will be successful or will result in better performance.

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Separately Managed Accounts (SMAs) are investment services provided by Franklin Templeton Private Portfolio Group, LLC (FTPPG), a federally registered investment adviser. Client portfolios are managed based on investment instructions or advice provided by one or more of the following Franklin Templeton affiliated sub-advisers: ClearBridge Investments, LLC. Management is implemented by FTPPG, the designated sub-adviser or, in the case of certain programs, the program sponsor or its designee. 

Performance data quoted represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or a loss when you sell your shares. Returns reflect reinvestment of dividends and capital gains. Performance figures for periods shorter than one year represent cumulative figures and are not annualized. All performance is reported in US dollars.

ClearBridge Investments, LLC, Franklin Templeton Investment Solutions, Martin Currie, Royce Investment Partners, Western Asset Management Company, LLC, and Franklin Templeton claim compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Professional money management may not be suitable for all investors. Factual information relating to the securities discussed was obtained from sources believed to be reliable, but there can be no guarantee as to its accuracy. It should not be assumed that investments made in the future will be profitable or will equal the performance of the securities discussed in the material.

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Franklin Templeton (FT) is not undertaking to provide impartial advice. Nothing herein is intended to provide fiduciary advice. FT has a financial interest.

Important data provider notices and terms available at www.franklintempletondatasources.com.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. 

The S&P 500 Index features 500 leading U.S. publicly traded companies, with a primary emphasis on market capitalization.
Source: © S&P Dow Jones Indices LLC. All rights reserved.

All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.

Footnotes

  1. Dividend yield is calculated without the deduction of fees and expenses. 

  2. Capitalization Rate is calculated without the deduction of fees and expenses.