Are these stocks better than their funds? T. Rowe Price (TROW) [profile], Franklin Resources (BEN) [profile] and BlackRock (BLK) [profile] are asset managers whose stock you should buy and AllianceBernstein (AB) [profile] should be avoided. So reports Seeking Alpha.

The author terms his three must-buy mutual fund managers as dividend plays that provide a good two- to four-percent yield this year. And, he expects those dividends to grow in the future.

Another reason he gives to purchase these fund managers is their capacity to earn more than 10 percent annually over the next five years, and their capability to increase dividends vis-a-vis growth in earnings.

Strong investment franchises, good inflows and good fund performance are other core reasons he gives to consider investing in these fund firms.

AllianceBernstein, on the other hand, is one to sell, he writes. The New York City-based asset manager faced a 32-percent decline in its AUM as investors moved their money to other firms.

Those outflows resulted to a drop in stock price over the last three years to $13 from $60. Though the global investment firm offers an attractive eight-percent dividend yield, investors should be aware of the considerable risk of capital loss in this stock, he concludes. 

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE