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  N󰁯󰁷 I󰁳 󰁴󰁨󰁥 T󰁩󰁭󰁥 󰁴󰁯 R󰁥󰁡󰁰 󰁴󰁨󰁥 D󰁩󰁶󰁩󰁤󰁥󰁮󰁤󰁳 DIVIDEND-PAYING STOCKS OFFER SEVERAL BENEFITS For conservative investors looking to participate in the upside of the market, stocks of dividend-paying companies offer the best of all worlds: possibility of greater total return, potential to offset inflation and favourable tax treatment. POSSIBILITY OF GREATER TOTAL RETURN Over time, total returns from dividend-paying stocks* have been greater than those of non-payers. Reinvested dividends have provided greater returns   12/73 12/83 12/93 12/03 12/13$4,000,000$3,500,000$3,000,000$2,500,000$2,000,000$1,500,000$1,000,000$500,000$0 $3,930,077$1,141,254 71% of returns werefrom dividends S&P/TSX Composite Index (Total Return including Dividend Reinvestments) S&P/TSX Composite Index (Price Return without Dividend Reinvestments) *Includes dividend payouts, dividend growth and any increase in price. $100,000 initial investment. The S&P/TSX Composite Total Return Index includes reinvested dividends and capital gains. Source: Bloomberg, as of December 31, 2013. POTENTIAL TO OFFSET INFLATION Historically, actual dividend payouts have exceeded inflation over time. S&P/TSX 12 months dividend per share total growth vs. inflation total growth 45040035030025020015010050011/00 3/04 6/07 9/10 12/13 Total Growth: +326%Total Increase: +27%  S&P/TSX Composite 12 Months Dividend Per Share Headline CPI** **Headline Consumer Price Index is not adjusted for seasonality which includes food and energy prices.Source: Bloomberg, as of December 31, 2013. FAVOURABLE TAX TREATMENT Dividend income is taxed more favourably than interest income. After-tax proceeds of $100 $80$70$60$50$40$30$20$10$0Assumes 2013 Ontario marginal tax rates: Interest Income = 46.41%, Eligible Dividends = 29.54%.Source: Taxtips 2013 Ontario. † Effective July 29, 2013, Bissett Dividend Income Fund was renamed Franklin Bissett Dividend Income Fund. †† Effective July 29, 2013, Bissett Canadian Dividend Fund was renamed Franklin Bissett Canadian Dividend Fund. FOR DEALER USE ONLY GARP FRANKLIN BISSETT DIVIDEND INCOME FUND † FRANKLIN BISSETT CANADIAN DIVIDEND FUND †† SERIES CDN$CORPORATE CLASSCDN$SERIES CDN$CORPORATE CLASSCDN$CORPORATE CLASS-SERIES TCDN$ Series A Front203CC Series A Front3559Series A Front1017CC Series A Front3476CC Series T Front3484Series A DSC303CC Series A DSC3561Series A DSC1018CC Series A DSC3478CC Series T DSC3486Series A Low Load519CC Series A Low Load3560Series A Low Load1019CC Series A Low Load3477CC Series T Low Load3485Series F233CC Series F3562Series F1020CC Series F3479Series T Front294CC Series T Front3565Series O1021CC Series I3480Series T DSC295CC Series T DSC3567CC Series O3481Series T Low Load520CC Series T Low Load3566CC Series R3482Series I283CC Series I3563CC Series S3483Series O113CC Series O3564Interest IncomeDividend Income $53.59$70.46  ATTRACTIVE FUND YIELDS AND LOW RISKComparing Franklin Bissett Dividend Income Fund and Franklin Bissett Canadian Dividend Fund to several top stocks in the S&P/TSX Composite Index 1 ã Franklin Bissett Dividend Income Fund: Dividend Yield 4.50%; Standard Deviation 5.28% ã Franklin Bissett Canadian Dividend Fund: Dividend Yield 4.53%; Standard Deviation 7.48% ã S&P/TSX Composite TRI: Dividend Yield 2.93%; Standard Deviation 10.10% Yield and 3-Year Standard Deviation (%) Franklin BissettDividend IncomeFund*Franklin BissettCanadian DividendFundBCE Inc.RogersCommunicationsTransCanada Corp.Bank of Nova Scotia1612840   Average Stock Risk   Average Stock Yield Yield   Risk 2 Sources: Bloomberg, Morningstar Direct and PC Bond as of December 31, 2013. 1  4 of the 25 largest weighted stocks in the S&P/TSX Composite TRI which are also held in the funds. 2  3-Year Standard Deviation as of December 31, 2013.*Equity dividend yield of Franklin Bissett Dividend Income Fund. FRANKLIN BISSETT IDENTIFIES KEY DIVIDEND-PAYING SECTORS With lower beta and stable earnings, defensive sectors such as Telecommunication Services and Utilities tend to pay out higher and more consistent dividends. Of the sectors Franklin Bissett Dividend Income Fund and Franklin Bissett Canadian Dividend Fund are overweight relative to their benchmarks, more than 90% of the funds’ holdings within those sectors paid a dividend in the last 12 months. Franklin Bissett Canadian Dividend Fund’s Over/Underweight vs. S&P/TSX Composite TRI Energy 3.2Financials 2.9Utilities 2.2Consumer Staples 1.0Telecommunication Services 0.9Industrials 0.6Consumer Discretionary -0.8Information Technology -1.6Health Care -3.0Materials -5.3 Totals may not equal 100% due to rounding.Source: Franklin Templeton Investments as of December 31, 2013. © 2014 Franklin Templeton Investments Corp. All rights reserved. 1017 STRE 12/13 As of December 31, 2013, the historical annual compounded rates of return for Series A units of Franklin Bissett Dividend Income Fund are: 1 year 15.31%; 3 years 9.32%; 5 years 11.59%; 10 years 6.19%; 6.31% since inception (November 24, 2000). Series A units of Franklin Bissett Canadian Dividend Fund are: 1 year 16.25%; 3 years 8.44%; 5 years 14.63%; 10 years 8.47%; 8.51% since inception (December 22, 2003). These include changes in unit value and reinvestment of all distributions but do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder which may have reduced returns. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please refer to www.franklintempleton.ca/define for definition of yield measures. Franklin Bissett Investment Management, previously named Bissett Investment Management, is part of Franklin Templeton Investments Corp. Ask your financial advisor how Franklin Bissett’s dividend opportunities can help strengthen your portfolio’s total returnor visit www.franklintempleton.ca —key search word “Dividend” . FRANKLIN BISSETT         2        0        1        4        0        1        1        7        1        6        7        4 T󰁷󰁯 C󰁯󰁭󰁰󰁥󰁬󰁬󰁩󰁮󰁧 D󰁩󰁶󰁩󰁤󰁥󰁮󰁤 F󰁯󰁣󰁵󰁳󰁥󰁤 O󰁰󰁰󰁯󰁲󰁴󰁵󰁮󰁩󰁴󰁩󰁥󰁳 Why own individual stocks of dividend-paying companies when you can have an entire portfolio handpicked by experts in the Canadian market? Franklin Bissett Investment Management is a conservative growth manager with over 30 years’ experience in identifying companies that demonstrate the potential to sustain and grow their dividends over time.
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