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Franklin (BEN) Announces 15% Dividend Hike: Time to Hold?
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On Tuesday, Franklin Resources Inc. (BEN - Free Report) hiked its quarterly common stock dividend by 15% from the prior-quarter payout to 23 cents per share. The new dividend will be paid on Jan 10, 2018, to shareholders of record as of Dec 26, 2017.
The latest move is Franklin’s 38th consecutive dividend increase. This reflects the company’s commitment to return value to shareholders with its strong cash generation capabilities. Prior to this, the company had raised its dividend by 11% to 20 cents per share in December 2016.
Such capital deployment activities are part of Franklin’s long-term strategy to boost shareholder value. It also includes investment in profitable businesses, while sustaining financial stability and flexibility.
Based in San Mateo, CA, Franklin is a global investment management organization operating as Franklin Templeton Investments with about $753 billion in assets under management (AUM). The organization provides an array of global and domestic investment management solutions.
Earlier this week, the company reported preliminary AUM of $753.2 billion by its subsidiaries for November 2017. This is slightly up from $750.7 billion as of Oct 31, 2017, and nearly 5.4% from $714.4 billion as of Nov 30, 2016.
Considering Tuesday’s closing price of $44.15 per share, the dividend yield is currently valued at 2.08%.
Prudent Expense Management: Franklin recorded 7%, 14% and 3% declines in operating expenses in fiscal 2015, 2016 and 2017, respectively. While potential investments in the technology front might escalate expenses in fiscal 2018, previous cost-cutting initiatives will likely improve the top line, going forward.
Leverage: Franklin’s debt/equity ratio comes in at 0.08 against the S&P 500 average of 0.70, reflecting lower debt burden. It highlights the company’s sound financial flexibility.
Superior Return on Equity (ROE): Franklin’s ROE of 13.48%, as compared with the industry average of 12.84%, indicates the company’s commendable position over its peers.
Share Price Movement: Franklin’s shares have gained 11.6%, so far, this year as compared with 31.1% growth recorded by the industry.
Competitive Landscape
Some other investment managers that have raised their dividends in the recent past include Eaton Vance Corp. (EV - Free Report) , SEI Investments Co. (SEIC - Free Report) and Raymond James Financial, Inc. (RJF - Free Report) . Eaton Vance raised its quarterly dividend by 10.7%, while Raymond James increased by 13.6%. Further, SEI Investments has announced a 7% rise in semi-annual dividend.
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Image: Bigstock
Franklin (BEN) Announces 15% Dividend Hike: Time to Hold?
On Tuesday, Franklin Resources Inc. (BEN - Free Report) hiked its quarterly common stock dividend by 15% from the prior-quarter payout to 23 cents per share. The new dividend will be paid on Jan 10, 2018, to shareholders of record as of Dec 26, 2017.
The latest move is Franklin’s 38th consecutive dividend increase. This reflects the company’s commitment to return value to shareholders with its strong cash generation capabilities. Prior to this, the company had raised its dividend by 11% to 20 cents per share in December 2016.
Such capital deployment activities are part of Franklin’s long-term strategy to boost shareholder value. It also includes investment in profitable businesses, while sustaining financial stability and flexibility.
Based in San Mateo, CA, Franklin is a global investment management organization operating as Franklin Templeton Investments with about $753 billion in assets under management (AUM). The organization provides an array of global and domestic investment management solutions.
Earlier this week, the company reported preliminary AUM of $753.2 billion by its subsidiaries for November 2017. This is slightly up from $750.7 billion as of Oct 31, 2017, and nearly 5.4% from $714.4 billion as of Nov 30, 2016.
Considering Tuesday’s closing price of $44.15 per share, the dividend yield is currently valued at 2.08%.
Investors interested in this Zacks Rank #3 (Hold) stock can have a look at the asset manager’s fundamentals and growth opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Prudent Expense Management: Franklin recorded 7%, 14% and 3% declines in operating expenses in fiscal 2015, 2016 and 2017, respectively. While potential investments in the technology front might escalate expenses in fiscal 2018, previous cost-cutting initiatives will likely improve the top line, going forward.
Leverage: Franklin’s debt/equity ratio comes in at 0.08 against the S&P 500 average of 0.70, reflecting lower debt burden. It highlights the company’s sound financial flexibility.
Superior Return on Equity (ROE): Franklin’s ROE of 13.48%, as compared with the industry average of 12.84%, indicates the company’s commendable position over its peers.
Share Price Movement: Franklin’s shares have gained 11.6%, so far, this year as compared with 31.1% growth recorded by the industry.
Competitive Landscape
Some other investment managers that have raised their dividends in the recent past include Eaton Vance Corp. (EV - Free Report) , SEI Investments Co. (SEIC - Free Report) and Raymond James Financial, Inc. (RJF - Free Report) . Eaton Vance raised its quarterly dividend by 10.7%, while Raymond James increased by 13.6%. Further, SEI Investments has announced a 7% rise in semi-annual dividend.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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