Why Franklin Resources, Inc. (BEN) is a Prime Dividend Aristocrat for Your Portfolio
Wednesday, Nov 27, 2024 8:47 am ET
1min read Franklin Resources, Inc. (BEN), operating as Franklin Templeton, has solidified its position as one of the best dividend aristocrats to consider now. With a 43-year history of consecutive annual dividend increases, BEN's consistent payouts and strong financial health make it an attractive choice for income-oriented investors.
BEN's high dividend yield and stable payout ratio are key indicators of its dividend safety and growth potential. The company's annual dividend of $1.24 per share yields 5.58%, significantly higher than the average dividend aristocrat yield of 2.8%. Additionally, BEN's payout ratio is currently 59%, indicating a sustainable payout level and ample room for future increases.
Franklin Resources' global presence and diversified portfolio of funds further mitigate risk and contribute to dividend consistency. With over $1.5 trillion in assets under management (AUM) across 220 countries and territories, BEN is well-positioned to navigate various market conditions and maintain stable cash flows. The company's diverse fund offerings, spanning equities, fixed income, and multi-asset strategies, provide a broad exposure to various asset classes, reducing portfolio volatility.
BEN's ability to raise assets and grow its AUM is a significant driver of its dividend growth. In Q3 2024, BEN reported $1.5 trillion in AUM, up 6% YoY, demonstrating its strong asset-raising capabilities. This growth is attributed to net inflows and market appreciation, as BEN's diversified investment strategies and global presence have enabled it to attract and retain clients.
Franklin Resources' focus on actively managed funds and alternative investments differentiates it from other dividend aristocrats. BEN's exposure to alternative investments, such as real estate, private equity, and hedge funds, allows investors to access a more diversified income stream, reducing the impact of market volatility on its dividend payments. Additionally, BEN's actively managed funds provide investors with access to professional investment expertise, further enhancing the company's ability to generate consistent income.
BEN's strong balance sheet and liquidity position support its ability to maintain and increase dividends. As of 2024, BEN boasts an annual dividend of $1.24 per share, with a yield of 5.58%, backed by its Standard & Poor's and Moody's issuer ratings of AA2 and AA2, respectively. Furthermore, BEN's diverse portfolio of fixed-income securities and equity investments, totaling $1.4 trillion in AUM, bolsters its liquidity and ability to fund its dividend payouts.
In conclusion, Franklin Resources, Inc. (BEN) is a top choice among dividend aristocrats due to its consistent dividend growth, strong financial health, global presence, and focus on actively managed funds and alternative investments. BEN's high dividend yield and stable payout ratio, combined with its ability to raise assets and grow its AUM, make it an attractive option for income-oriented investors seeking consistent dividend growth.
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BEN's high dividend yield and stable payout ratio are key indicators of its dividend safety and growth potential. The company's annual dividend of $1.24 per share yields 5.58%, significantly higher than the average dividend aristocrat yield of 2.8%. Additionally, BEN's payout ratio is currently 59%, indicating a sustainable payout level and ample room for future increases.
Franklin Resources' global presence and diversified portfolio of funds further mitigate risk and contribute to dividend consistency. With over $1.5 trillion in assets under management (AUM) across 220 countries and territories, BEN is well-positioned to navigate various market conditions and maintain stable cash flows. The company's diverse fund offerings, spanning equities, fixed income, and multi-asset strategies, provide a broad exposure to various asset classes, reducing portfolio volatility.
BEN's ability to raise assets and grow its AUM is a significant driver of its dividend growth. In Q3 2024, BEN reported $1.5 trillion in AUM, up 6% YoY, demonstrating its strong asset-raising capabilities. This growth is attributed to net inflows and market appreciation, as BEN's diversified investment strategies and global presence have enabled it to attract and retain clients.
Franklin Resources' focus on actively managed funds and alternative investments differentiates it from other dividend aristocrats. BEN's exposure to alternative investments, such as real estate, private equity, and hedge funds, allows investors to access a more diversified income stream, reducing the impact of market volatility on its dividend payments. Additionally, BEN's actively managed funds provide investors with access to professional investment expertise, further enhancing the company's ability to generate consistent income.
BEN's strong balance sheet and liquidity position support its ability to maintain and increase dividends. As of 2024, BEN boasts an annual dividend of $1.24 per share, with a yield of 5.58%, backed by its Standard & Poor's and Moody's issuer ratings of AA2 and AA2, respectively. Furthermore, BEN's diverse portfolio of fixed-income securities and equity investments, totaling $1.4 trillion in AUM, bolsters its liquidity and ability to fund its dividend payouts.
In conclusion, Franklin Resources, Inc. (BEN) is a top choice among dividend aristocrats due to its consistent dividend growth, strong financial health, global presence, and focus on actively managed funds and alternative investments. BEN's high dividend yield and stable payout ratio, combined with its ability to raise assets and grow its AUM, make it an attractive option for income-oriented investors seeking consistent dividend growth.
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