Bank of America Maintains Buy on Franklin Resources Following $2/Share Dividend

Bank of America has published a research report on Franklin Resources BEN after the company reported a positive AUM announcement, introduced 2012 quarterly estimates, and announced a special $2/share dividend. In the report, Bank of America writes, "Franklin reported November-end assets under management of $675.8bn.,= down 2.6% from October but still up 2.4% QTD. Based on market appreciation of funds, BEN appeared to have about -$0.7bn. in outflows, better than the -$2bn. we forecast, with outflows from international/global equity, hybrid, and global bonds, mostly offset by inflows to domestic fixed income, equity and munis. QTD we estimate ~$2bn. in outflows, better than expected considering markets and global bond underperformance. BEN's board also announced a special $2.00 cash dividend, the first since Dec. 2009's $3.00 special dividend. BEN raised its regular dividend to $0.27 from $0.25, an 8% increase, as expected. With $21/sh. net cash and investments predividend, above its 2-year average of $19/share, BEN still has room for potential acquisitions or buybacks if desired." Bank of America maintains its Buy rating and $133 price objective on Franklin Resources, which is currently trading up $2.15 from yesterday's