How Safe Is Franklin Resources' Dividend?

Franklin Resources (NYSE: BEN) is one of Wall Street's largest asset managers. The company manages investment funds that have more than $742 billion of assets between them, generating a lucrative stream of income from management fees each year.

That treasure trove of client money has made Franklin Resources one of the market's best performing high-yield stocks over its history, affording 36 years of consecutive dividend increases and a spot on the list of so-called Dividend Aristocrats. But though the dividend may be safe, its status as a dividend growth stock is in question.

Franklin Resources should be able to pay out its current dividend for a very long time to come, thanks in no small part to two insulating factors: its cash-rich balance sheet and a low payout ratio.

Source: Fool.com