Franklin Electric (FELE) has drawn fresh attention after its Board of Directors approved a 5.7% increase in the quarterly cash dividend to $0.28 per share, payable on February 19, 2026.

At a share price of $99.62, Franklin Electric has seen a 6.95% 3 month share price return and a 42.77% 5 year total shareholder return. The latest dividend increase adds to a relatively modest 0.76% 1 year total shareholder return.

If this dividend move has you thinking about other income ideas, it could be worth scanning pharma stocks with solid dividends as a starting point for more potential yield opportunities.

With Franklin Electric trading at $99.62 and sitting at a small discount to both an indicated price target and an intrinsic value estimate, the key question is whether this is a genuine opening or whether the market is already pricing in future growth.

Most Popular Narrative: 7.8% Undervalued

With Franklin Electric at $99.62 versus a widely followed fair value narrative of $108.00, the current setup hinges on how confident you are in the growth and margin path behind that number.

Ongoing modernization and digitalization of water infrastructure, such as adoption of smart monitoring technology (e.g., EVO ONE), together with increased presence in global growth markets, provide recurring and higher-margin revenue channels, boosting earnings durability and expanding long-term net margins.

Curious what it takes for a pumps manufacturer to support that kind of valuation gap? The core of this narrative leans on steadier earnings, higher margins, and a future profit multiple that plays a significant role in the valuation. If you want to see exactly how those pieces are expected to fit together, the full narrative lays out the assumptions in detail.

Result: Fair Value of $108 (UNDERVALUED)

However, this depends on cyclical end markets and acquisition execution. Weak dewatering or mining demand, or integrations that are harder than expected, could quickly challenge that 7.8% undervalued story.

Build Your Own Franklin Electric Narrative

If you are not sold on this story or prefer to rely on your own research, you can build a custom view in just a few minutes, starting with Do it your way.

A great starting point for your Franklin Electric research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Franklin Electric is on your radar, do not stop there. A few focused stock lists could surface opportunities you would regret missing later.

• Hunt for potential value by scanning these 875 undervalued stocks based on cash flows that line up with strong cash flow based signals.
• Spot growth stories in cutting edge tech by checking out these 24 AI penny stocks positioned around artificial intelligence themes.
• Build a steadier income base by reviewing these 12 dividend stocks with yields > 3% that currently offer yields above 3%.

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.