A portfolio of stocks I've been building since September 3 is named Volio Folio. It 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!
I'm reviewing today the second of five financial services stocks striving to be picked to join the Volio folio collection. This could be the seventh pick for Volio!
That financial sector includes twenty industries ranging from Asset Management to 8 kinds of Banks, Credit, Exchanges, 6 kinds of Insurance, Savings, and all such financial institutions.
My subject today is a large-cap asset management firm, Franklin Resources. Their trading ticker symbol is BEN. This is my first report on BEN.
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 2019, Franklin had $715.2 billion in managed assets, composed primarily of equity (40%), fixed-income (40%), and hybrid (19%) funds.
Distribution tends to be weighted more toward retail investors (73% of AUM), as opposed to institutional (24%) and high-net-worth (3%) clients. Franklin is, however, one of the more global firms of the U.S.-based asset managers, with half of its AUM invested in global/international strategies and a third of managed assets sourced from clients domiciled outside the United States.
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 paying equities or funds like
Franklin Resources, Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
BEN Price
Franklin's price per share closed at $26.97 yesterday. A year ago its price was $28.95. So, in the past year its price dropped $1.98 or 6.8%.
Assuming Franklin's stock trades in the range of $24.00 to $33.00 this next year, Franklin's recent $26.97 price could rise by $1.03 and get to $28.00 by mid-October, 2020, assuming some upward price momentum kicks-in by mid-year.
BEN Dividends
Franklin's's latest declared quarterly dividend was $0.26, paid October 11th, last Friday.
That $0.26 Q dividend equates to $1.04 annually and yields 3.86% based on yesterday's $26.97 closing price.
BEN Gains?
Adding the $1.04 annual estimated dividend to my $1.03 estimate of Franklin's price upside shows a $2.07 potential gross gain, per share, which will be reduced by costs to trade these shares.
Say we put a little under $1,000.00 today into Franklin Resources Inc at its recent $26.97 price, we'd buy 37 shares of BEN.
A $10 broker fee paid half at purchase and half at sale might cost us about $0.27 per share.
Subtract that $0.27 brokerage cost from the estimated $2.07 gross estimated gain leaves a net gain of $1.80 X 37 shares = $66.60 or a 6.7% net gain on a $997.89 investment.
Therefore, Franklin Resources Inc, whose trading ticker symbol is BEN now shows a possible net gain of 6.7% including a 3.86% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to learn if People's Franklin Resources Inc is worth your time and money.
Comments
Log in or sign up to join the conversation.