Daily Report: Franklin Resources (BEN)

Franklin Resources Inc, known by the ticker symbol BEN, is a large cap Asset Management Firm, operating in the financial services business sector. This is my second report on BHB for this Viital stock portfolio. I last reviewed it on October 7th.

Franklin Resources provides investment services for individual and institutional investors. 

At the end of June 2021, Franklin had $1.552 trillion in managed assets, composed primarily of equity (35%), fixed-income (42%), multi-asset/balanced (10%) funds, alternatives (9%) and money market funds.

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Distribution tends to be weighted more toward retail investors (53% of AUM), as opposed to institutional (45%) and high-net-worth (2%) clients. 

Franklin is also one of the more global firms of the U.S.-based asset managers, with more than 35% of its AUM invested in global/international strategies and just over 25% 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.

Three key data points gauge any dividend equity or fund such as Franklin Resources Inc (BEN):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

BEN Price

Franklin's price per share was $31.32 as of yesterday's market close. One year ago its price was $27.73. Therefore Franklin's share price rose $3.59 or just over 12.9% in the past year.

If Franklin's stock trades in the range of $25.00 to $40.00 this next year, its recent $31.32 share price might rise by $5.58 to reach $37.00  by January 28, 2023. This estimate equates to the median of 1 year target estimates from eleven analysts tracking BEN for their brokerages.

BEN Dividends

Franklin Resources Inc's most recent quarterly dividend of $0.29 was paid to shareholders January 14th, to those on record as of December 30th. The Franklin estimated Annual dividend payout per share of $1.16 yields 3.7% per yesterday's $31.32. closing price. 

Franklin Resources Inc (BEN) has paid regular quarterly dividend payouts increasing annually since January,1987. That stretch marks 35 years this month .BEN Returns

Adding the $1.16 annual estimated BEN forward-looking dividend to the estimated one-year share price upside estimate of $5.68 shows a $6.84 potential gross gain, per share, to be reduced by any costs to trade BEN shares.  

At yesterday's $31.32 price per share, a little over $1000 would buy 32 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.31 per share.

Subtract that maybe $0.31 brokerage cost from my estimated $6.84 gross gain estimate per share results in a net gain of $5.53 X 32 shares = $208.96 for a 20.8% net gain on a $1,002.24 investment.

So it is that Franklin Resources Inc (BEN) shows a possible 20.8% net gain including a 3.7% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Franklin Resources Inc (BEN)  could generate $37 in cash dividends alone. Note that a single share of BEN stock bought at yesterday's closing price was $31.32. Therefore, BEN's share price is  $5.66 below the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good point to pickup Franklin Resources Inc (BEN) shares. The estimated next-year dividend from $1K invested is  $5.66  more than BEN's single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Franklin Resources Inc (BEN). Only time and money invested in this stock will determine its market value.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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