Wall Street Loves This 4.88% Dividend Stock and So Will Passive Income Investors

Core Viewpoint - Franklin Resources, Inc. is recognized for its strong dividend yield of 4.88% and has a long-standing reputation for prudent investment practices, appealing to passive income investors [12]. Company Overview - Franklin Resources, Inc. operates as a holding company for the Franklin Templeton family of mutual funds, offering over 450 funds that cover a wide range of investment opportunities [1][4]. - Founded in 1947 by Rubert Johnson, the company emphasizes the principles of "frugality and prudence" inspired by Benjamin Franklin [4]. Growth and Expansion - The company has experienced significant growth, managing $2.5 million in 1957 and expanding to over $40 billion AUM by 1989 through acquisitions and strategic moves [6]. - Recent acquisitions, including Legg Mason, have increased Franklin's AUM to $1.6 trillion as of March 2024, positioning the firm in private investing and alternative markets [8]. Financial Performance - Analysts have noted a focus on growth that has impacted profit margins negatively in recent quarters, yet some view the current stock price pullback as a buying opportunity [10]. - The consensus price target among 12 Wall Street analysts is $27.71, indicating a potential upside of 10% from the current market price [10]. Dividend History - Franklin Resources has maintained a consistent dividend payout since 1995, reinforcing its commitment to shareholder returns and its investment philosophy [12].