12 Best 5% Dividend Stocks To Buy According To Hedge Funds

9. Franklin Resources, Inc. (NYSE:BEN)

Number of Hedge Fund Holders: 26

Dividend Yield as of February 5: 6.20%

Franklin Resources, Inc. (NYSE:BEN) ranks ninth on our list of the best dividend stocks with over 5% yield. The American multinational asset management company offers a wide range of related services and products to its consumers. The company has seen its stock price drop by more than 21% in the past 12 months, a trend that aligns with its history of fluctuating performance. However, the company has undergone notable changes over time. By pursuing strategic acquisitions, such as last year’s purchase of options-trading technology firm volScout, the asset management firm has enhanced its capabilities to better serve both individual and institutional investors.

In its fiscal Q1 2025 earnings report, Franklin Resources, Inc. (NYSE:BEN) revealed a 34% year-over-year growth in long-term inflows, excluding reinvested distributions. It also recorded positive net flows across equity, multi-asset, and alternative investments, totaling $17 billion for the quarter. While long-term net outflows reached $50 billion, excluding Western Asset Management, the company saw $18 billion in long-term net inflows, with gains across all asset classes.

In December 2024, Franklin Resources, Inc. (NYSE:BEN) announced a 3% hike in its quarterly dividend to $0.32 per share. Through this increase, the company stretched its dividend growth streak to 49 years. The stock supports a dividend yield of 6.2%, as of February 5.

Insider Monkey’s database of Q3 2024 indicated that 26 hedge funds owned stakes in Franklin Resources, Inc. (NYSE:BEN), compared with 27 in the previous quarter. These stakes have a total value of over $272.6 million. With over 3.5 million shares, AQR Capital Management was the company’s leading stakeholder in Q3.