Topic: How To Invest

Dividend Advisor Hotline – Friday, March 24, 2017

Article Excerpt

Dear client, BROADRIDGE FINANCIAL SOLUTIONS INC., $67.76, New York symbol BR, serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. Investor communications makes up 72% of Broadridge’s revenue. Securities processing and transaction clearing make up the remaining 28%. With the October 2016 payment, the company increased its quarterly dividend by 10.0%, to $0.33 a share from $0.30. The new annual rate of $1.32 yields 1.9%. In the 2017 second quarter, ended December 31, 2016, revenue jumped 39.7%, to $892.6 million from $638.9 million a year earlier. The big increase reflects the contributions of the North American Customer Communications business of DST Systems; Broadridge paid $410 million in cash for that business in July 2016. The company has now announced another purchase. Broadridge will buy Message Automation Ltd. for an undisclosed amount. That firm makes software to help investment banks and brokers comply with increasingly complex securities-trading and reporting regulations. The company has paid quarterly dividends every year since Automatic Data…