BEN - Buying Back Into Franklin Resources

2024-05-27 03:58:21 ET

Summary

• Franklin Resources shares have returned 4.14% since my previous review, compared to 21.7% for the S&P 500.
• I believe that buying back into Franklin Resources is a worthwhile investment due to a relatively secure dividend and positive risk premium.
• The company's financial snapshot shows a decline in sales and net income, but the capital structure appears less risky with a decrease in debt.

In mid-October of last year, I announced to a relatively disinterested world that I was going to hold off buying back into Franklin Resources, Inc. ( BEN ) ahead of their final year earnings. Since then, the shares have returned about 4.14% against a gain of about 21.7% for the S&P 500. I thought I’d review the name yet again to see if it makes sense to buy back in. I’ve previously done relatively well on Franklin Resources, and I hope to repeat that performance. I don’t mention that to brag, though that’s a pleasant side effect. I mention it to point out that it’s possible to earn money in companies that may be in terminal decline. As I say to every young investor who asks me about this, it’s not just about looking at growth (or decline). It’s at least as much about the price you pay for that growth (or decline). So, if the shares are cheap enough, and the dividend secure enough, this would be a worthwhile buy....

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