- Q1 Earnings Highlights: Federated Hermes (NYSE:FHI) Vs The Rest Of The Custody Bank Stocks
May 14, 2026
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the custody bank industry, including Federated Hermes (NYSE:FHI) and its peers.
Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space.
The 14 custody bank stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.9%.
In light of this news, share prices of the companies have held steady as they are up 4.3% on average since the latest earnings results.
Federated Hermes (NYSE:FHI)
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE:FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Federated Hermes reported revenues of $479 million, up 13.1% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and revenue estimates.
"In the first quarter, we saw record gross sales and positive net flows in our equity offerings as we continued momentum from the previous year, with investor interest in a range of our offering types," said J. Christopher Donahue, president and chief executive officer.Federated Hermes Total Revenue
The stock is down 4.4% since reporting and currently trades at $55.56.
We think Federated Hermes is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q1: Franklin Resources (NYSE:BEN)
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE:BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Franklin Resources reported revenues of $2.29 billion, up 8.7% year on year, outperforming analysts’ expectations by 11.8%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.Franklin Resources Total Revenue
The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $30.82.
Is now the time to buy Franklin Resources? Access our full analysis of the earnings results here, it’s free.
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Weakest Q1: Ridgepost Capital (NYSE:RPC)
Operating as a bridge between institutional investors and hard-to-access private market opportunities, Ridgepost Capital (NYSE:RPC) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
Ridgepost Capital reported revenues of $75.35 million, up 11.2% year on year, falling short of analysts’ expectations by 3.8%. It was a slower quarter as it posted a significant miss of analysts’ EBITDA and revenue estimates.
Ridgepost Capital delivered the weakest performance against analyst estimates in the group. The stock is flat since the results and currently trades at $8.43.
Read our full analysis of Ridgepost Capital’s results here.
BNY (NYSE:BK)
Tracing its roots back to 1784 when it was founded by Alexander Hamilton, BNY (NYSE:BK) is a global financial institution that provides asset servicing, wealth management, and investment services to institutions, corporations, and high-net-worth individuals.
BNY reported revenues of $5.41 billion, up 13.8% year on year. This result topped analysts’ expectations by 4.3%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS and revenue estimates.
The stock is flat since reporting and currently trades at $132.80.
Read our full, actionable report on BNY here, it’s free.
Northern Trust (NASDAQ:NTRS)
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ:NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Northern Trust reported revenues of $2.21 billion, up 13.8% year on year. This number surpassed analysts’ expectations by 4%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA and EPS estimates.
The stock is flat since reporting and currently trades at $159.20.
Read our full, actionable report on Northern Trust here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
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- Franklin Hits a New 52-Week High: Is There Further Upside Potential?
May 14, 2026
Franklin Resources, Inc. BEN shares touched a new 52-week high of $32.24 during yesterday's trading session. However, the stock closed the session a little lower at $32.04.
Over the past six months, shares of BEN have rallied 44.5% against the industry’s decline of 4.1%. Additionally, its close peers, such as Federated Hermes, Inc. FHI and T. Rowe Price Group, Inc. TROW, gained 13.6% and 1.2%, respectively, over the same period.
Price PerformanceZacks Investment Research
Image Source: Zacks Investment Research
Does BEN stock have more upside left despite showing recent strength in share price? Let us find out.
Factors Aiding BEN Stock
Acquisitions and Strategic Partnerships to Drive Expansion: Franklin has been actively expanding its business through acquisitions and partnerships to strengthen its investment capabilities and diversify its offerings. In April 2026, the company agreed to acquire 250 Digital, a crypto investment firm spun out of CoinFund, and launched the Franklin Crypto unit to enhance its digital asset capabilities and institutional reach. Earlier, in February 2026, Franklin partnered with Binance to introduce an off-exchange institutional collateral program aimed at improving the safety and capital efficiency of digital asset trading.
The company has also been focusing on strengthening its alternatives and technology platforms. In November 2025, Franklin partnered with Wand AI to scale agentic AI across research and operations as part of its digital transformation initiatives. In October 2025, it acquired Apera Asset Management, which increased its global alternative credit AUM to more than $90 billion and expanded its overall alternatives platform to nearly $270 billion. These initiatives are expected to support long-term growth and strengthen its alternatives platform.
Consistent AUM Expansion: The company has witnessed solid growth in its assets under management (AUM) balance over the years, recording a CAGR of 3.1% over the last five fiscal years (ending fiscal 2025), despite declines in fiscal 2022 and 2025. The growth trend continued in the first six months of fiscal 2026.
AUM Growth TrendFranklin Resources, Inc.
Image Source: Franklin Resources, Inc.
Franklin’s efforts to diversify into asset classes witnessing rising client demand, particularly alternative investments, are expected to support AUM growth in the coming period. Further, its regionally focused distribution model has strengthened the non-U.S. business and supported favorable net flows.
Improving Revenue Base: Franklin has benefited from organic growth over the years. Though revenues declined in fiscal 2023, the company recorded a CAGR of 1.9% over the last three fiscal years ending fiscal 2025. The growth momentum continued in the first six months of fiscal 2026.
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The company’s strong distribution platform has supported diversified inflows across funds, vehicles and asset classes, driving business growth. Further, its early presence in several international markets has provided a first-mover advantage. Its efforts to diversify revenue streams, supported by a solid fixed-income pipeline, are expected to aid revenue growth going forward. The Zacks Consensus Estimate for sales is pegged at 3.6% and 1% year-over-year growth for fiscal 2026 and 2027, respectively.
Sales EstimatesZacks Investment Research
Image Source: Zacks Investment Research
Strong Liquidity Position Supports Capital Distribution Activities: The company enjoys a solid balance sheet position. As of March 31, 2026, the company had no short-term debt. Further, its liquidity position, comprising cash and cash equivalents, receivables and investments, was $6.6 billion. Thus, Franklin’s strong liquidity position provides ample financial flexibility to support capital distribution activities while meeting operational and growth needs. In December 2025, its board authorized the repurchase of an additional 20.8 million shares, taking the total authorization to 40 million shares. As of March 31, 2026, shares worth $35.9 million remained available under the authorization.
Apart from the share repurchase program, the company pays regular dividends. In December 2025, BEN raised its cash dividend by 3.1% to 33 cents per share. Over the past five years, the company has raised its dividend five times. Its current dividend yield stands at 4.12%, above the industry average of 2.49%. Meanwhile, Federated Hermes and T. Rowe Price offer dividend yields of 2.72% and 5.05%, respectively.
Dividend YieldZacks Investment Research
Image Source: Zacks Investment Research
These capital distribution activities, combined with a strong liquidity profile, will likely stoke investors’ confidence in the stock.
Concerns Prevailing for Franklin Resources
Volatile Investment Management Fees: Franklin’s investment management fees, which accounted for 79.3% of total revenues as of March 31, 2026, have witnessed a volatile trend over the years. The metric largely depends on the level and mix of AUM, making it vulnerable to market fluctuations, foreign exchange movements and regulatory changes.
While investment management fees declined in fiscal 2020 and fiscal 2023, the metric improved in fiscal 2021, fiscal 2022, fiscal 2024 and fiscal 2025. The uptrend continued in the first six months of fiscal 2026. Nevertheless, unfavorable changes in AUM and market conditions may hurt fee revenues going forward.
Rising Expense Base Remains a Concern: Franklin’s escalating expense base continues to be a headwind. Though expenses declined in 2022 due to lower sales and marketing costs and synergy benefits from the Legg Mason acquisition, the metric witnessed a CAGR of 7.9% over the last three years ended fiscal 2025. The uptrend continued in the first six months of fiscal 2026.
Further, the Apera acquisition is expected to add nearly $30 million in expenses in fiscal 2026. Ongoing technology investments, higher fundraising-related costs and integration expenses are likely to keep costs elevated and pressure bottom-line growth.
BEN's Earnings Estimates and Valuation Analysis
Analysts are optimistic regarding Franklin’s earnings growth potential. Over the past week, the Zacks Consensus Estimate for the company’s fiscal 2026 and 2027 earnings has been revised upward. The estimated figures reflect respective year-over-year growth rates of 22.1% and 8.5%.
Earnings EstimateZacks Investment Research
Image Source: Zacks Investment Research
In terms of valuation, BEN stock appears inexpensive relative to the industry. The company is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 11.23X, which is below the industry’s P/E of 13.95X.
Price-to-Earnings F12MZacks Investment Research
Image Source: Zacks Investment Research
Meanwhile, Federated Hermes holds a P/E ratio of 10.56X, while T. Rowe Price’s P/E ratio stands at 10.74X.
Parting Thoughts on Franklin Resources
Franklin’s strategic acquisitions and partnerships, expanding alternatives platform, and growing focus on customized portfolio solutions are expected to support long-term AUM and revenue growth. Further, strong liquidity and consistent capital distribution activities underscore the company’s financial stability and shareholder-friendly approach.
The company’s improving earnings performance, diversified investment offerings and strengthening global distribution platform also position it well for long-term growth. Additionally, BEN stock appears attractively valued relative to the industry.
However, volatility in investment management fees due to market fluctuations and a rising expense base remains a concern. Higher technology investments, integration costs and fundraising-related expenses are likely to pressure margins in the near term.
Hence, it may not be the ideal time to buy the stock. However, long-term investors with existing holdings may find value in maintaining their stake, given its solid fundamentals.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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- Franklin Hits a New 52-Week High: Is There Further Upside Potential?
May 14, 2026 · zacks.com
BEN hits 52-week high after 44.5% six-month surge. Will acquisitions, AUM growth and partnerships drive more upside?
- 1 Financials Stock on Our Buy List and 2 We Question
May 13, 2026
Financial institutions play a critical role, offering everything from consumer banking to wealth management and specialized financial solutions. But uncertainty about fiscal and monetary policy has tempered enthusiasm, limiting the industry's gains to 1.3% over the past six months. This return lagged the S&P 500's 7.1% climb.
Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. Taking that into account, here is one financials stock boasting a durable advantage and two best left ignored.
Two Financials Stocks to Sell:
Franklin Resources (BEN)
Market Cap: $16.13 billion
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE:BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Why Do We Think BEN Will Underperform?
5.4% annual revenue growth over the last five years was slower than its financials peers Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 1.6% annually ROE of 8% reflects management’s challenges in identifying attractive investment opportunities
Franklin Resources’s stock price of $31.02 implies a valuation ratio of 10.9x forward P/E. Check out our free in-depth research report to learn more about why BEN doesn’t pass our bar.
Navient (NAVI)
Market Cap: $802.7 million
Spun off from Sallie Mae in 2014 to handle the company's loan servicing and collection operations, Navient (NASDAQ:NAVI) provides education loan servicing and business processing solutions that help manage federal student loans, private education loans, and government services.
Why Do We Steer Clear of NAVI?
Products and services are facing significant end-market challenges during this cycle as sales have declined by 21.3% annually over the last five years Earnings per share have contracted by 15.9% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance Debt-to-equity ratio of 18.9× is concerningly high, indicating excessive leverage that could limit financial flexibility
Navient is trading at $8.54 per share, or 11.8x forward P/E. Dive into our free research report to see why there are better opportunities than NAVI.
One Financials Stock to Buy:
StoneX (SNEX)
Market Cap: $9.66 billion
Originally known as INTL FCStone until its 2020 rebranding, StoneX Group (NASDAQ:SNEX) provides a global financial services network connecting companies, traders, and investors to markets through clearing, execution, and advisory services.
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Why Should You Buy SNEX?
Annual revenue growth of 44.3% over the last two years was superb and indicates its market share increased during this cycle Earnings per share grew by 29.6% annually over the last two years and trumped its peers Impressive 16.9% annual tangible book value per share growth over the last five years indicates it’s building equity value this cycle
At $121.88 per share, StoneX trades at 3.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
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- T. Rowe Price April AUM Rises 6.7% Sequentially Despite Net Outflows
May 13, 2026
T. Rowe Price Group, Inc. TROW announced its preliminary assets under management (AUM) of $1.83 trillion for April 2026. The figure reflected an increase of 6.7% from the prior month. The company experienced net outflows of $10.6 billion in April 2026, primarily driven by a few large redemptions.
Breakdown of TROW’s AUM Performance
At the end of April, T. Rowe Price’s equity products totaled $882 billion, an increase of 8.9% from the previous month. Fixed income (including money market) grew 1.4% to $218 billion. Furthermore, multi-asset products totaled $665 billion, an increase of 6.4% from the previous month.
Alternative products, valued at $60 billion, remained stable from the prior month.
T. Rowe Price registered $599 billion in target date retirement portfolios in April 2026, which rose 6.8% from the prior month.
Our Take on TROW
T. Rowe Price continues to benefit from favorable market performance and strength across equity and multi-asset products, which supported AUM growth in April 2026. The company’s strong investment track record, diversified product portfolio and retirement-focused offerings are expected to support long-term asset growth. However, significant client redemptions and continued reliance on advisory fees remain concerns amid volatile market conditions.
T. Rowe Price’s Zacks Rank & Price Performance
Over the past six months, TROW shares have risen 1.1% against the industry’s 4.4% decline.Zacks Investment Research
Image Source: Zacks Investment Research
Currently, T. Rowe Price carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
Franklin Resources, Inc. BEN reported a preliminary AUM of $1.74 trillion as of April 30, 2026, which increased 3.6% from the prior month.
The increase in preliminary AUM reflected the positive impact of markets and long-term net inflows of $4 billion, inclusive of $1 billion of long-term net outflows at Western Asset Management. Excluding Western Asset Management, BEN’s preliminary long-term net inflows were $5 billion.
Invesco IVZ announced preliminary AUM of $2.34 trillion for April 2026, representing an 8.3% increase from the previous month.
In the reported month, IVZ’s net long-term inflows were $18.2 billion. Money market net inflows were $2.2 billion. AUM was positively impacted by favorable market returns, which increased the AUM by $151 billion. FX increased the AUM by $8.2 billion.
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Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
Invesco Ltd. (IVZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Lazard's April AUM Rises 6.2% on Market Appreciation & Net Inflows
May 13, 2026
Lazard, Inc. LAZ reported a preliminary assets under management (AUM) balance of $275.4 billion as of April 30, 2026, reflecting an increase of 6.2% from March 31, 2026.
The AUM growth was primarily driven by market appreciation of $13.2 billion, foreign exchange appreciation of $2.9 billion and net inflows of $0.1 billion.
LAZ's April AUM Breakdown
In April, Lazard’s equity assets increased 6.8% from the prior month’s level to $206.2 billion. Further, fixed-income assets rose 3.4% sequentially to $35.6 billion, while multi-assets increased 4.8% on a sequential basis to $24.2 billion.
Meanwhile, alternative assets increased 8.6% sequentially to $9.3 billion.
Our Take on Lazard
Lazard’s diversified asset classes and improving market conditions supported AUM growth in April. However, the company’s heavy dependence on financial advisory revenues could continue to pressure top-line growth. Nonetheless, ongoing cost-control initiatives are expected to support profitability in the near term.
LAZ’s Price Performance & Zacks Rank
Over the past six months, shares of Lazard have lost 6.9% compared with the industry’s decline of 10.8%.Zacks Investment Research
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
Franklin Resources, Inc. BEN reported a preliminary AUM of $1.74 trillion as of April 30, 2026, which increased 3.6% from the prior month.
The increase in preliminary AUM reflected the positive impact of markets and long-term net inflows of $4 billion, inclusive of $1 billion of long-term net outflows at Western Asset Management. Excluding Western Asset Management, BEN’s preliminary long-term net inflows were $5 billion.
T. Rowe Price Group, Inc. TROW announced its preliminary assets under management of $1.83 trillion for April 2026. The figure reflected an increase of 6.7% from the prior month. The company experienced net outflows of $10.6 billion in April 2026, primarily driven by a few large redemptions.
At the end of April, TROW’s equity products totaled $882 billion, an increase of 8.9% from the previous month. Fixed income (including money market) grew 1.4% to $218 billion. Furthermore, multi-asset products totaled $665 billion, an increase of 6.4% from the previous month.
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Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
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T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
Lazard, Inc. (LAZ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- T. Rowe Price April AUM Rises 6.7% Sequentially Despite Net Outflows
May 13, 2026 · zacks.com
TROW's April AUM climbed 6.7% to $1.83T as gains in equity and multi-asset products offset $10.6B in net outflows.
- FDVV vs. NOBL: Which Dividend Stock ETF Is a Better Buy?
May 12, 2026
Investors concerned about a possible artificial intelligence (AI) bubble, high valuations of tech stocks, or too much portfolio concentration might consider branching out into dividend stocks. Companies that pay high dividends tend to be well-established and consistently profitable -- and that means a steady flow of passive income for investors.
An exchange-traded fund (ETF) that specializes in dividends might be a good place to start. But not all high-dividend ETFs deliver the same returns. Two ETFs attracting a lot of interest from investors are the Fidelity High Dividend ETF(NYSEMKT: FDVV) and the ProShares S&P 500 Dividend Aristocrats® ETF(NYSEMKT: NOBL). (The term Dividend Aristocrats® is a registered trademark of Standard & Poor's Financial Services LLC.)
Will AI create the world's first trillionaire? Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
Continue »
Here are more details on these two dividend stock ETFs and how they've performed -- and how to decide which is better for your portfolio.Image source: Getty Images.
FDVV: tech-heavy dividend ETF
One reason for buying dividend ETFs is to avoid the volatility of tech stocks. But the Fidelity High Dividend ETF somewhat goes against that strategy. Its top four holdings are all major tech stocks, making up about 20% of the fund:
Nvidia(NASDAQ: NVDA) (6.8% of the fund) Apple(NASDAQ: AAPL) (5.7%) Microsoft(NASDAQ: MSFT) (4.5%) Broadcom (NASDAQ: AVGO) (3.5%)
If your goal as a dividend stock investor is to diversify away from tech stocks and the AI boom, this fund might not make sense for your portfolio. Even at 112 holdings, its returns will be influenced by the tech giants.
But FDVV has delivered average annual returns (by net asset value) of 13.3% since its launch in September 2016. This ETF delivers solid dividends, with a trailing 12-month dividend yield of 2.8%. And its price-to-earnings (P/E) ratio of 19.1 looks cheap compared to the S&P 500 index's earnings multiple of 31.9.
NOBL: proven track record of high dividends
The ProShares S&P 500 Dividend Aristocrats® ETF comprises 69 stocks that have all paid and grown their dividends for at least 25 years. These companies have strong fundamentals and steady earnings. The fund tends to go through less volatility than the S&P 500 index.
The Dividend Aristocrats® ETF's top holdings include:
West Pharmaceutical Services(NYSE: WST) (1.7% of the fund) Franklin Resources(NYSE: BEN) (1.7%) Caterpillar(NYSE: CAT) (1.65%) Archer-Daniels Midland(NYSE: ADM) (1.6%) Nucor Corp(NYSE: NUE) (1.6%)
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These top holdings aren't AI stocks -- they are pharmaceutical, financial, manufacturing, and food processing companies. The Dividend Aristocrats® fund delivers a dividend yield of 2.09% (as of April 30), which is almost twice the yield of the S&P 500 index (1.1%). And NOBL trades at a price-to-earnings (P/E) ratio of 21, which is much lower than the S&P 500 index's P/E ratio of 31.9.
Since the fund's inception in October 2013, the ProShares S&P 500 Dividend Aristocrats® ETF has delivered average annual returns (by net asset value) of 10.5%. But it has underperformed the S&P 500 index and the Fidelity High Dividend ETF for the past five years.NOBL data by YCharts
And the Dividend Aristocrats® ETF's expense ratio is 0.35%, while the Fidelity High Dividend ETF charges only 0.15%. The best low-cost index funds have much lower fees than these ETFs.
Why buy FDVV instead of NOBL
Neither of these funds is in my portfolio. But if I had to choose between FDVV and NOBL, I would choose the Fidelity High Dividend ETF. It charges lower fees; it's slightly more diversified, with 112 holdings instead of 69; and it's delivered a better dividend yield for the past 12 months.
Both funds have some odd characteristics and shortcomings. Both have underperformed the S&P 500 index in recent years. Most long-term investors might be better off buying an S&P 500 index fund or one of the best dividend ETFs that charges lower fees.
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FDVV vs. NOBL: Which Dividend Stock ETF Is a Better Buy? was originally published by The Motley Fool
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- FDVV vs. NOBL: Which Dividend Stock ETF Is a Better Buy?
May 12, 2026
Key Points
The Fidelity High Dividend ETF has delivered 13.3% annualized return since September 2016. The ProShares S&P 500 Dividend Aristocrats ETF has underperformed it -- and the S&P 500 -- in recent years, while charging a higher expense ratio. Neither of these funds ranks among the best dividend ETFs, but the Fidelity fund has a higher dividend yield and a lower price-to-earnings ratio.10 stocks we like better than Fidelity Covington Trust - Fidelity High Dividend ETF ›
Investors concerned about a possible artificial intelligence (AI) bubble, high valuations of tech stocks, or too much portfolio concentration might consider branching out into dividend stocks. Companies that pay high dividends tend to be well-established and consistently profitable -- and that means a steady flow of passive income for investors.
An exchange-traded fund (ETF) that specializes in dividends might be a good place to start. But not all high-dividend ETFs deliver the same returns. Two ETFs attracting a lot of interest from investors are the Fidelity High Dividend ETF(NYSEMKT: FDVV) and the ProShares S&P 500 Dividend Aristocrats® ETF(NYSEMKT: NOBL). (The term Dividend Aristocrats® is a registered trademark of Standard & Poor's Financial Services LLC.)
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Here are more details on these two dividend stock ETFs and how they've performed -- and how to decide which is better for your portfolio.
Image source: Getty Images.
FDVV: tech-heavy dividend ETF
One reason for buying dividend ETFs is to avoid the volatility of tech stocks. But the Fidelity High Dividend ETF somewhat goes against that strategy. Its top four holdings are all major tech stocks, making up about 20% of the fund:
Nvidia(NASDAQ: NVDA) (6.8% of the fund)Apple(NASDAQ: AAPL) (5.7%)Microsoft(NASDAQ: MSFT) (4.5%)Broadcom (NASDAQ: AVGO) (3.5%)
If your goal as a dividend stock investor is to diversify away from tech stocks and the AI boom, this fund might not make sense for your portfolio. Even at 112 holdings, its returns will be influenced by the tech giants.
But FDVV has delivered average annual returns (by net asset value) of 13.3% since its launch in September 2016. This ETF delivers solid dividends, with a trailing 12-month dividend yield of 2.8%. And its price-to-earnings (P/E) ratio of 19.1 looks cheap compared to the S&P 500 index's earnings multiple of 31.9.
NOBL: proven track record of high dividends
The ProShares S&P 500 Dividend Aristocrats® ETF comprises 69 stocks that have all paid and grown their dividends for at least 25 years. These companies have strong fundamentals and steady earnings. The fund tends to go through less volatility than the S&P 500 index.
The Dividend Aristocrats® ETF's top holdings include:
West Pharmaceutical Services(NYSE: WST) (1.7% of the fund)Franklin Resources(NYSE: BEN) (1.7%)Caterpillar(NYSE: CAT) (1.65%)Archer-Daniels Midland(NYSE: ADM) (1.6%)Nucor Corp(NYSE: NUE) (1.6%)
These top holdings aren't AI stocks -- they are pharmaceutical, financial, manufacturing, and food processing companies. The Dividend Aristocrats® fund delivers a dividend yield of 2.09% (as of April 30), which is almost twice the yield of the S&P 500 index (1.1%). And NOBL trades at a price-to-earnings (P/E) ratio of 21, which is much lower than the S&P 500 index's P/E ratio of 31.9.
Since the fund's inception in October 2013, the ProShares S&P 500 Dividend Aristocrats® ETF has delivered average annual returns (by net asset value) of 10.5%. But it has underperformed the S&P 500 index and the Fidelity High Dividend ETF for the past five years.
NOBL data by YCharts
And the Dividend Aristocrats® ETF's expense ratio is 0.35%, while the Fidelity High Dividend ETF charges only 0.15%. The best low-cost index funds have much lower fees than these ETFs.
Why buy FDVV instead of NOBL
Neither of these funds is in my portfolio. But if I had to choose between FDVV and NOBL, I would choose the Fidelity High Dividend ETF. It charges lower fees; it's slightly more diversified, with 112 holdings instead of 69; and it's delivered a better dividend yield for the past 12 months.
Both funds have some odd characteristics and shortcomings. Both have underperformed the S&P 500 index in recent years. Most long-term investors might be better off buying an S&P 500 index fund or one of the best dividend ETFs that charges lower fees.
Should you buy stock in Fidelity Covington Trust - Fidelity High Dividend ETF right now?
Before you buy stock in Fidelity Covington Trust - Fidelity High Dividend ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fidelity Covington Trust - Fidelity High Dividend ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,826!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,285!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 12, 2026.
Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Broadcom, Caterpillar, Microsoft, Nvidia, and ProShares S&P 500 Dividend Aristocrats ETF. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
- Franklin Resources Expands Private Markets And SMA Offerings As Shares Climb
May 12, 2026
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Franklin Resources (NYSE:BEN), through Franklin Templeton, has introduced Private Markets Model Portfolios built on blockchain-enabled infrastructure in partnership with Corastone. The company has also partnered with Ritholtz Wealth Management to launch an exclusive, momentum-driven equity separately managed account (SMA) strategy. These moves expand Franklin Templeton's presence in private markets and customized equity solutions beyond its existing fund lineup.
For investors tracking NYSE:BEN, these product launches add fresh context to a stock that closed at $31.68 and has returned 4.0% over the past week, 27.2% over the past month, and 33.1% year to date. The 55.2% return over the past year and 20.6% over five years show how the market has priced the company over different time frames as it continues to evolve its offerings.
The new private markets portfolios and equity SMA are aimed at advisors and clients looking for more tailored building blocks, including access to private assets and momentum-focused equity exposure. Readers can watch how asset flows, adoption among advisors, and any future product extensions shape the role of these launches within Franklin Resources' broader business mix.
Stay updated on the most important news stories for Franklin Resources by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Franklin Resources.NYSE:BEN Earnings & Revenue Growth as at May 2026
📰 Beyond the headline: 2 risks and 3 things going right for Franklin Resources that every investor should see.
Quick Assessment
⚖️ Price vs Analyst Target: At $31.68, the stock is about 3.7% above the consensus analyst target of $30.55, which sits within the one standard deviation range of $26.89 to $34.20. ⚖️ Simply Wall St Valuation: The shares are described as trading close to estimated fair value, signalling a roughly fair valuation on Simply Wall St's model. ✅ Recent Momentum: A 27.2% return over the last 30 days indicates strong short term momentum around these product announcements.
There are many factors to consider when deciding whether to buy, sell or hold Franklin Resources. Head to Simply Wall St's company report for the latest analysis of Franklin Resources's fair value.
Key Considerations
📊 The blockchain enabled private markets portfolios and the Ritholtz equity SMA broaden Franklin Resources's menu of solutions in private assets and factor based equities. 📊 It may be useful to monitor advisor uptake, fee levels on these offerings, and any disclosed asset flows alongside the recent 27.2% 30 day return and $31.68 price. ⚠️ With two flagged minor risks including dividend coverage and earnings quality, income focused investors may want to weigh payout sustainability as the product set expands.
Story Continues
Dig Deeper
For the full picture, including more risks and potential rewards, check out the complete Franklin Resources analysis. Alternatively, you can visit the community page for Franklin Resources to see how other investors believe this latest news may affect the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BEN.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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