A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fifth of five financial services sector stocks primed to join Volio as the ninth of nine representing the sector. One of the stocks I discuss this week could become the fiftieth overall selection for Volio!
My subject today is a large-cap asset management company named, Franklin Resources Inc. Its trading ticker is BEN. This is my second report on Franklin Resources Inc for this portfolio. Last I reported about them on October 15.
Franklin Resources provides investment services for individual and institutional investors. Its funds are marketed under the Franklin, Templeton, Mutual Series, Bissett, Fiduciary, and Darby brands.
At the end of June 2020, Franklin had $622.8 billion in managed assets, composed primarily of equity (39%), fixed-income (39%), and multi-asset/balanced (21%) funds. Distribution tends to be weighted more toward retail investors (72% of AUM), as opposed to institutional (25%) and high-net-worth (3%) clients.
Franklin is also one of the more global firms of the U.S.-based asset managers we cover, with more than 40% of its AUM invested in global/international strategies and close to a third of managed assets sourced from clients domiciled outside the United States.
The firm invests in the public equity, fixed income, and alternative markets.
Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.
I use three key data points to gauge dividend equities or funds like Franklin Resources Inc:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
BEN Price
Franklin's price per share closed at $21.89 yesterday. A year ago their price was $26.98. Price fell $5.09 or nearly 19% last year.
Assuming Franklin's stock trades in the range of $12 to $26 this next year, its recent $21.89 price might rise by $2.11 to reach $24.00 by August 14, 2021.
BEN Dividends
Franklin's most recently declared quarterly dividend was $0.27, paid July 27th. That Q dividend equates to $1.08 annually and yields 4.93% at yesterday's $21.89 share price.
BEN Gains?
Adding the $1.08 annual estimated dividend to my $2.11 optimistic estimate of Franklin's price upside shows a $3.19 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little over $1,000.00 today in Franklin Resources Inc at $21.89, we would buy 46 shares of BEN stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.22 per share.
Subtract that $0.22 brokerage cost from my estimated $3.19 gross gain per share results in a net gain of $2.97 X 46 shares = $136.62 for a 13.65% net gain on a $1,006.94 investment.
Thus, Franklin Resources Inc shows a possible 13.65% net gain including a 4.93% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tel Franklin Resources Inc is worth it.
Comments
Log in or sign up to join the conversation.