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Topic: Blue Chip Stocks

BROADRIDGE FINANCIAL $63.75

BROADRIDGE FINANCIAL $63.75 (New York symbol BR; TSINetwork Rating: Average) (201 -714-3000; www.broadridge.com; Shares outstanding: 118.2 million; Market cap: $7.6 billion; Dividend yield: 1.9%) gets 72% of its revenue from managing investor communications. Back-office securities processing and transaction clearing make up the remaining 28%; they also represent the company’s strongest growth prospects in the U.S. and globally.

As part of its long-term strategy, Broadridge just added a pivotal client—China Post & Capital Global Asset Management. It will manage the trading, compliance and reporting for the Hong Kong company’s exchange-traded funds (ETFs).

China Post & Capital recently acquired the Market Access family of ETFs from the Royal Bank of Scotland for 360 million euros ($526 million Cdn.). The China Post Group, Capital Securities and Sumitomo Mitsui Banking Corporation jointly own the firm.

With total assets of just $28.9 billion, Mainland China’s ETF market remains in the early stages of its development. But it is a high-growth segment, and Broadridge is well positioned to profit from it.

Broadridge is a buy.

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