20 Worst Dividend Aristocrat Stocks According to Analysts

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

Average Analyst Rating Score: 4.1

Franklin Resources, Inc. (NYSE:BEN) ranks second on our list of the worst dividend aristocrat stocks according to analysts. The company currently offers a quarterly dividend of $0.31 per share and has a dividend yield of 5.68%, as of June 14. It has been growing its dividends consistently for the past 48 years.

Analysts are giving Franklin Resources, Inc. (NYSE:BEN) a cold shoulder as mutual funds have been experiencing a rise in outflows and the company’s primary products are packaged in traditional actively managed mutual funds. The company’s revenue for the quarter came in at $2.2 billion, up 11% from the same period last year. Analysts predict 7.5% and 7% growth in revenue in 2024 and 2025, respectively. This contrasts with a historical growth rate of nearly 9% over the past five years. The company’s over half client base is made up of retail investors, who typically have shorter investment horizons. This could result in higher outflows and a decrease in its AUM. Analysts have a consensus Sell rating on the stock, with a $25.03 price target.

At the end of March 2024, 31 hedge funds in Insider Monkey’s database owned stakes in Franklin Resources, Inc. (NYSE:BEN), down from 26 in the previous quarter. These stakes are valued at nearly $200 million in total. With 1 million shares, Fairfax Financial Holdings was the company’s leading stakeholder in Q1.