BROADRIDGE FINANCIAL SERVICES INC. $24 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 121.9 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.3; Dividend yield: 3.0%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 85% of all proxy votes in the U.S.
The U.S. Patent and Trademark Office recently confirmed one of the company’s key patents, which covers how Broadridge creates and organizes data that mutual fund operators must file with the Securities and Exchange Commission. Broadridge’s unique system makes it easier for brokerage firms, insurance companies and pension plans to access this information in a timely manner. Reaffirming this patent will help Broadridge maintain its leading position in this niche market.
Broadridge is a buy.