Franklin Limited Duration Income Trust
FTFFinancial Services · Stock · monthly payer
Forward Yield
13.64%
Annual Dividend
$0.74
Payout Ratio
254%
5-Yr Growth
-4.5%
Ex-Date
Sep 23, 2026
Frequency
Monthly
Summary
As of September 2026, Franklin Limited Duration Income Trust (FTF) yields 13.64% ($0.74 per share annually), with a blended fair-value estimate of $8.69 — +54% upside, so it screens as undervalued. Dividend safety grade: C (51/100).
Is FTF a good dividend stock?
MixedFranklin Limited Duration Income Trust (FTF) pays a monthly dividend yielding 13.64% ($0.74/yr), with 0 years of growth and a dividend-safety grade of C. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2023
- Elevated payout ratio (254%)
- Dividend has been shrinking, not growing
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 13.64%
- Payout Ratio
- 254%
- Annual Dividend
- $0.74
- 5-Yr Avg Growth
- -4.5%
- Ex-Dividend Date
- Sep 23, 2026
- Years of Growth
- 0
- Frequency
- monthly
- Beta
- 0.44
- Market Cap
- $215.8M
- P/E Ratio
- 18.4
- 5-Yr Total Return
- -38%
- 52-Week Range
- $5.52 – $6.45
- Dividend Safety
- C · 51/100
- Ever Cut?
- Yes (2023)
Frequently Asked Questions
FTF Price — Last 12 Months
Daily close
Price Return
1 Year
-9%
3 Years
-4%
5 Years
-38%
52-Week Range
$5.52 – $6.45
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is FTF worth?
Undervaluedlow confidenceOur blended fair-value estimate for Franklin Limited Duration Income Trust is $8.69 per share, versus a market price of $5.64. That implies 54% of upside — a margin of safety of about 35%.
Fair Value
$8.69
Current Price
$5.64
Upside
+54%
Margin of Safety
35%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model -4.4% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), -4.4% stage-1 growth, 2.5% terminal growth, $0.29 EPS, $0.74 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
FTF Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
Full FTF dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Sep 23, 2026 | — | $0.0620 | regular |
| Aug 24, 2026 | — | $0.0620 | regular |
| Jul 24, 2026 | — | $0.0620 | regular |
| Jun 23, 2026 | — | $0.0620 | regular |
| May 21, 2026 | — | $0.0620 | regular |
| Apr 23, 2026 | — | $0.0620 | regular |
| Mar 24, 2026 | — | $0.0620 | regular |
| Feb 20, 2026 | — | $0.0620 | regular |
| Jan 23, 2026 | — | $0.0620 | regular |
| Dec 15, 2025 | — | $0.0620 | regular |
| Nov 17, 2025 | — | $0.0620 | regular |
| Oct 17, 2025 | — | $0.0620 | regular |
| Sep 18, 2025 | — | $0.0620 | regular |
| Aug 18, 2025 | — | $0.0620 | regular |
Income Calculator
At $0.74 / yr per share
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