Portfolio Update
The FiveTwenty portfolio received no dividends in the past week.
| Past Week Dividend | $26.50 |
| Current Quarter Dividend (Q4 2021 ) | $954.52 |
| LifeTime Dividend | $2,055.85 |
| Estimated Annual Dividend | $3,866.01 |
The capital allocation for the week of 12/26/2021 to 01/01/2022 will be used to add to our position in Franklin Resources (NYSE: BEN)
BEN – Position Update
Since our last check-in on BEN in week 50 of 2021, there have not been any significant developments for the company. The share price decreased 1.85% from $34.05 to $33.42 during the period.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 42 years | 41 years | |
| Yield | 3.35% | 3.29% | 1.78% |
| Payout Ratio | 29.95%1 | 29.95%1 | NA |
| P/E | 8.941 | 9.101 | NA |
1 computed using TTM adjusted EPS of $3.74 as of Q4 2021
Q4 2021 earnings report
Did BEN’s latest earnings report raise any warning flags?
We discussed BEN’s financial performance for FY 2021 during our previous update. As pointed out in that article the Legg Mason acquisition was the primary driver for the record financial results BEN posted for the year. Overall for Q4 2021, revenue grew 28%, adjusted net income increased 122%, and adjusted EPS were 125% higher compared to Q4 2020.
| Revenue (in millions) | Adj. Net Income (in millions) | Adj. EPS . | |
| Q4 2020 | $1,705 | $291 | $0.56 |
| Q4 2021 | $2,181 | $644.6 | $1.26 |
| % Change | 28% | 122% | 125% |
Additional noteworthy developments during the quarter:
- None
Thesis
Why are we adding to our position in BEN?
With no significant developments for BEN since our last check-in, our investment thesis remains unchanged.
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