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Special Dividends

Stock (Symbol) Stock Price

Franklin Resources (BEN)

$127

Data is as of Expected to Report Sector

December 12, 2012

Jan 30

Finance

Sharek’s Take
David SharekFranklin Resources is a mutual fund company, you are probably familiar with their Franklin Funds and Templeton Funds. I think of their areas of expertise are conservative value funds and and international funds. BEN has increased its regular dividend every year since 1981 and loves paying special dividends — when it can. The regular dividend is around $1, and the company has paid special dividends of $2 in 2005, $3 in 2009, $2 in 2011 and $3 in 2012. I bet BEN will pay another big dividend this year.
Ten-Year Chart
BEN_2012_Q4_10yrThe Annual Profits look good, I’m surpirised the stock isn’t all all-time highs. Just don’t expect a move like BEN made 2002-2007, this company can’t grow like that again. Right now the estimated Long Term Growth Rate is only 8% and if you tack on a dividend of around 4% you get an estimated 12% total annual return.
4% Profit History
BEN_2012_Q4_PHBEN”s P/E used to be around 20. That’s probably too much to ask for now, but conservative stocks are hot right now so you never know. Market’s rising so that should yeild better EPS estimates than what’s shown here. 15 times earnings would be good and gives this stock nice upside.
comPower Ranking Bottom Line
Conservative Portfolio

8 of 18

Franklin Resources is going to have a good 2013 as the stock market is rising. I’m banking on a nice special dividend in addition to a stock that should hit all-time highs this year. BEN is ranked 8th in the Conservative Growth Portfolio Power Rankings. Don’t own funds, own the fund companies.

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