See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Franklin Resources, Inc. (BEN) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Franklin Resources, Inc. (BEN) - free report >>
Image: Bigstock
Franklin Rewards Shareholders with Additional Share Buyback
Franklin Resources, Inc. (BEN - Free Report) seems to be on track with its efforts to enhance shareholders’ value. The California-based asset manager announced an additional repurchase authorization of up to 50 million shares.
Notably, the new authorization, which does not have any expiration date, is an addition to the existing share buyback program under which 12.6 million shares remained outstanding for repurchase as of May 31, 2016. During the period from Oct 2015 to May 2016, the company repurchased around 24.6 million shares.
Separately, Franklin announced a quarterly cash dividend of 18 cents per share, which will be paid on Jul 15, 2016 to shareholders on record as of Jun 30, 2016.
Driven by a healthy liquidity position, the company is committed to increase shareholders’ wealth through dividend payments and share buybacks. Notably, Franklin has consistently hiked dividends every year since its inception in 1981, the latest being a 20% increase in Dec 2015.
With a strong liquidity and balance sheet position, we believe Franklin will continue to reward its shareholders. As of Mar 31, 2016, cash and cash equivalents along with investments were $10.6 billion.
While assets under management (AUM) exhibited a decline in May 2016 compared to the previous month, Franklin, as a high quality asset manager shows good prospects of long-term performance, flows and profitability, and substantial leverage for international AUM growth.
Currently Franklin carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the finance space include LPL Financial Holdings Inc. (LPLA - Free Report) , Union Bankshares Corporation and First Bancorp (FBP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>