Shares of Franklin Resources (BEN) are lower despite being raised to an outperform this morning at JP Morgan.
Analyst Kenneth Worthington says Franklin Resources' international operations will gain from a weaker dollar as well as its equity markets focus. Recent weakness in fixed income will be a disadvantage to the company's competitors as well.
The analyst is also adjusting second half ratings of 2009 based on improvements in global market returns versus domestic returns.
The Bottom Line
We have avoided shares of BEN since our early June coverage began last year, when the stock was trading at $99.63. The company has a 1.20% dividend yield, based on Friday's closing stock price of $69.74. The stock has technical support in the $60 price area. If the shares can firm up, we see overhead resistance around the $75-76 price levels. We would remain on the sidelines for now.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
Tom Reese/Paul Rubillo, Dividend.com
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