Why Is Franklin Resources' Dividend So High?
The name Franklin Resources (NYSE: BEN) probably isn't top of mind for most investors, but this financial services company is a pretty big deal. It owns both Franklin Templeton and Legg Mason, among many other companies. The stock has been hard-hit of late, pushing the yield up to a generous 4% or so. Here's what's going on and why income-focused investors might want to do a deep dive.
Through its various brands, Franklin Resources sells financial advice and financial products. It generally earns money through fees tied to the money it oversees, which is lumped together into the key industry figure assets under management (AUM). Investments are pretty sticky, so there's an annuity-like nature to the business. However, the assets it manages are largely invested in the capital markets, so the value of AUM changes every single day.
Image source: Getty Images.
Source Fool.com
