I Almost Didn't Buy This 6%+ Yielder Because of Industry Headwinds. Here's Why I'm Glad I Bought It Anyway.

I held Franklin Templeton (NYSE: BEN) stock since January 14, 2020. Initially, I hesitated to purchase the financial services stock due to headwinds the company faced from investors moving funds into low-cost passive index funds and no-fee brokers. At that time, the stock offered a dividend of around 6%, but I was concerned that during the COVID-19 pandemic, the company might reduce its dividend, which would alienate income-seeking investors and lead to a decline in the stock price.

Thankfully, my concerns proved unfounded. Instead of cutting its dividend, Franklin Templeton raised it by 3.1% to $0.33 per share in the previous year, marking the 46th consecutive year of dividend increases. Over the past year, the stock's price has surged more than 37%, resulting in a total return of more than 88% when the dividend is taken into account.