We recently compiled a list of the 20 Worst Dividend Aristocrat Stocks According to Analysts. In this article, we are going to take a look at where Franklin Resources, Inc. (NYSE:BEN) stands against the other dividend aristocrat stocks.
Dividend aristocrats are companies that have raised their dividend payouts for at least 25 consecutive years. Achieving and maintaining a dividend streak this long is a tough nut to crack. Among the approximately 6,000 stocks listed on the NYSE and NASDAQ, only around 67 companies have earned the distinction of being called dividend aristocrats. These companies have shown strong performance relative to the broader market over the years. The Dividend Aristocrat Index has outperformed the wider market with lower volatility since its inception in 2005.
Analysts have closely observed the performance of dividend aristocrats in the past and in recent times. They have found that dividend growth stocks have performed better than the overall market. Since its inception in 2005 up until September 2023, the dividend aristocrats index achieved a total return of 10.35%, surpassing the broader market’s return of 9.54% during the same timeframe.
Franklin Resources, Inc. (NYSE:BEN) currently offers a quarterly dividend of $0.31 per share and has a dividend yield of 5.68%, as of June 14. It has been growing its dividends consistently for the past 48 years. However, analysts are giving Franklin Resources a cold shoulder due to challenges in the mutual fund industry and the company’s revenue growth predictions.
Overall, BEN ranks 2nd on our list of the worst dividend aristocrat stocks to buy. While BEN may have potential as an investment, some AI stocks may hold greater promise for delivering higher returns in a shorter timeframe.