Franklin Lifts Dividend & Expands Repurchase Plan: Is it Sustainable?

Core Insights - Franklin Resources, Inc. (BEN) has announced a quarterly dividend increase to 33 cents per share, marking a 3.1% rise compared to both the previous quarter and the same quarter last year, with the dividend payable on January 9, 2026 [1] - The company has expanded its stock repurchase program to allow for the repurchase of up to 40 million shares, enhancing shareholder value by reducing outstanding shares [4][8] - BEN maintains a strong liquidity position of $5.6 billion as of September 30, 2025, with no short-term debt, supporting its ability to continue dividend payments and opportunistic share repurchases [5][8] Dividend and Shareholder Returns - The current dividend yield for BEN stands at 5.33%, significantly higher than the industry average of 2.16%, with a payout ratio of 58% [2] - Over the past five years, BEN has increased its dividend six times, providing consistent income for investors [2][8] Market Performance - Over the past year, BEN shares have gained 4.9%, contrasting with a 2% decline in the industry [10]