Franklin Resources (BEN): The Best Dividend Aristocrat Stock with Over 3% Yield

In the ever-changing landscape of the stock market, finding a reliable dividend stock can be a game-changer for income-seeking investors. One such stock that stands out is Franklin Resources (BEN). With a dividend yield of 6.48%, BEN not only offers a substantial income stream but also boasts a strong track record of dividend growth and financial stability. Let's dive into why Franklin Resources is a top pick for dividend investors.

Why Franklin Resources Stands Out

Franklin Resources has been a consistent performer in the financial sector, known for its robust dividend payouts and steady growth. The company's dividend yield of 6.48% is significantly higher than the sector average of 1.444%. This high yield is a testament to the company's commitment to returning value to its shareholders.



Sustainable Dividend Payout

One of the key factors that make Franklin Resources an attractive investment is its sustainable dividend payout. The company's payout ratio of 40.13% indicates that it is paying out 40.13% of its earnings as dividends. This relatively low payout ratio suggests that the company has a strong financial position and can sustain its dividend payouts. The company's past year earnings per share was $0.65, and their annual dividend per share is $1.26, which supports the sustainability of the dividend payout.

Consistent Dividend Growth

Franklin Resources has a long history of paying dividends and has consistently increased its dividend payout for 36 consecutive years. This is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future. The company's dividend payments per share have grown at an average rate of 3.33% over the past 12 months, 3.45% over the past 36 months, 3.58% over the past 60 months, and 9.96% over the past 120 months. This consistent growth in dividends has helped to increase the company's dividend yield over time.



Potential Risks and Benefits

While Franklin Resources offers a high dividend yield and a sustainable payout ratio, investors should be aware of potential risks. The company's dividend payout ratio can change over time, and it is important to regularly monitor the company's financial performance and dividend payment history. However, the company's strong track record of dividend growth and financial stability makes it a reliable investment for income-seeking investors.

Conclusion

Franklin Resources (BEN) is a top pick for dividend investors, offering a high dividend yield of 6.48% and a sustainable payout ratio of 40.13%. The company's consistent dividend growth and strong financial position make it a reliable investment for income-seeking investors. While there are potential risks, the benefits of investing in Franklin Resources far outweigh the risks. If you are looking for a reliable dividend stock with a high yield, Franklin Resources is a stock to consider.