Federated Investors controls about $302 billion in client assets, mostly in money market funds. At a time of such market uncertainty, more and more investors are likely to shift money into Federated's low-risk funds.
Citigroup analyst Prashant Bhatia thinks Federated is well-positioned to capitalize on a general shift of savings investments to money markets.
And even though Federated has reported that people have been pulling money out of the company's fixed income funds for the past 18 quarters, Bhatia maintains that the firm is "close to turning the corner" in its fixed-income business and could soon start posting net inflows into its bond funds.
Federated currently offers a dividend yield of 2%, and the dividend has increased at an average rate of 27% over the past five years. So like its money market funds, Federated's stock also offers some nice stability in a volatile market.
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