Why Franklin Resources (BEN) is a Great Dividend Stock Right Now

Company Overview - Franklin Resources (BEN) is headquartered in San Mateo and operates in the Finance sector, with a stock price change of 8.71% since the start of the year [3] - The company currently pays a dividend of $0.33 per share, resulting in a dividend yield of 5.08%, which is significantly higher than the Financial - Investment Management industry's yield of 2.63% and the S&P 500's yield of 1.34% [3] Dividend Analysis - The current annualized dividend of Franklin Resources is $1.32, reflecting a 3.1% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend 5 times, achieving an average annual increase of 3.38% [4] - The current payout ratio is 58%, indicating that the company paid out 58% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Franklin Resources' earnings per share for 2026 is $2.51, representing a year-over-year growth rate of 13.06% [5] - The company is viewed as a strong dividend play, appealing to income investors due to its solid earnings growth and attractive dividend yield [6] Investment Considerations - Established firms with secure profits are typically seen as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [6] - Franklin Resources is positioned as a compelling investment opportunity, especially for income investors, and currently holds a Zacks Rank of 3 (Hold) [6]