Franklin Resources, Inc. (BEN)

Franklin Resources’ (NYSE:BEN) dividend was increased by a solid 11%. Its overall yield is 1.98%. The firm started paying a dividend in 1993.

Franklin Resources is a publicly owned asset management holding company. The firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.

Franklin Resources has maintained a solid three-year growth rate of dividends of 21 percent. Franklin Resources currently ranks 10th in yield within the financial, asset management category. The quarterly dividend for the January payment will be $0.20 versus the prior year rate of $0.18 per share. Franklin Resources Inc. is not a member of our Top 100 Dividend Stock List (see below).

The dividend will be paid at the new higher rate on January 13, 2017, to shareholders of record at close of business on December 30, 2016. Franklin Resources is currently priced at $40.40. Listed in the table below are the quarterly dividend payments since 2010.

Date Quarterly Dividend
12/30/2016 0.2
9/28/2016 0.18
6/28/2016 0.18
3/29/2016 0.18
12/24/2015 0.18
9/28/2015 0.15
6/26/2015 0.15
3/27/2015 0.15
12/29/2014 0.65
9/26/2014 0.12
6/26/2014 0.12
3/27/2014 0.12
12/27/2013 0.12
9/26/2013 0.1
6/20/2013 0.097
3/26/2013 0.097
12/12/2012 0.097
9/26/2012 0.09
6/27/2012 0.09
3/28/2012 0.09
12/15/2011 0.757
9/28/2011 0.083
6/28/2011 0.083
3/29/2011 0.083
12/29/2010 0.083
9/28/2010 0.073
6/28/2010 0.073
3/29/2010 0.073

We examine Franklin Resources upon our five key criteria, which include; 

Quantitative Analysis:

Category Value Score
Dividend Yield 1.98% 290
Dividend Growth (3 to 6 year avg) 17.5% 105
Forward P/E 14.63  97
S&P Financial Rating A+ 80
Beta 1.30 200
Total Score   772

Additional quantitative information on P/BV ratio and historical yield;

% Yield 3 Year Div. Growth Rate 6 Year Div. Growth Rate BV 2016 P/BV Ratio 10 yr P/BV Low 10 yr P/BV High 5 yr lowest Yield % 5 yr max Yield %
1.98% 21% 17.5% 20.75 1.89 1.89 4.20 0.68% 1.98%

Positives;

  • Franklin Resources maintains an investment grade credit rating and a current dividend yield (1.98%) its five-year maximum.
  • Franklin Resources has maintained a three year growth rate of dividends of  21 percent.
  • Franklin Resources is trading at the bottom of its ten-year average price/sales (P/BV) ratio.

Negatives;

  • Franklin Resources’ dividend yield is below that of the S&P 500 Index.
  • Franklin Resources maintains a beta of 1.30, much higher than the average company.

Latest Earnings & Overall Analysis:

Franklin Resources issued its last earnings data over two months ago on October 26th. The company reported $0.82 EPS for the quarter, topping the consensus estimate of $0.69 by $0.13. Franklin Resources maintains a solid return on equity of 10.6%.  Franklin is one of the 10 largest U.S.-based asset managers, with just over two thirds of its AUM sourced from domestic clients. It is also the fifth largest global manager of cross-border funds.
• The company maintains thousands of active financial advisor relationships worldwide and has close to one thousand institutional client relationships in place.

Based on the firm’s lower than average dividend yield and high beta, Franklin Resources does not qualify as a member of our  Top 100 Dividend Stocks

Franklin Resources Inc. Dividend Yield Chart (Click to enlarge)

ben2

Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

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