Franklin Resources Inc. (BEN) is a publicly owned asset management holding company. The firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. This dividend champion has paid dividends since 1981 and managed to increase them for 37 years in a row.
The most recent dividend increase was in December 2017, when the Board of Directors approved a 15% increase in the quarterly dividend to 23 cents/share.
Over the past decade this dividend growth stock has delivered an annualized total return of 6.10% to its shareholders. Future returns will be dependent on growth in earnings and dividend yields obtained by shareholders.
The company has managed to deliver a 3.70% average increase in earnings per share over the past decade. Franklin Resources is expected to earn $2.87 per share in 2019 and $2.96 per share in 2020. In comparison, the company earned $3.19/share in 2018 ( the amount includes a one-time adjusting item of $1.80/share related to the new tax law that was signed at the end of 2017).
Between 2008 and 2018, the number of shares outstanding has decreased from 715 million to 538 million. The consistent decrease in shares outstanding adds an extra growth kick to earnings per share over time.
