For a rising portfolio

Learn everything you need to know in 'How to Find the Best Growth Stocks' for FREE from The Successful Investor.

Canadian Growth Stocks: CGI Group, CAE Inc., Fortis Inc. Stock and more.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

Topic: Growth Stocks

BROADRIDGE FINANCIAL SERVICES INC. $54 – New York symbol BR

BROADRIDGE FINANCIAL SERVICES INC. $54 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 120.9 million; Market cap: $6.5 billion; Price-to-sales ratio: 2.5; Dividend yield: 2.0%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada.

Without one-time items, Broadridge earned $39.9 million, or $0.32 a share, in its fiscal 2015 second quarter, which ended December 31, 2014. That’s up 27.9% from $31.2 million, or $0.25 a share, a year earlier. The company continues to add new clients and is doing a good job of holding on to existing ones. Revenue gained 10.4%, to $574.6 million from $520.6 million.

Broadridge typically makes half of its profits in its fourth quarter, which ends June 30. This is the busiest time for processing proxies and annual reports.

The company expects to earn $2.42 to $2.52 a share in fiscal 2015. The stock trades at 21.9 times the midpoint of that range, which is still reasonable in light of Broadridge’s growth prospects. The $1.08 dividend yields 2.0%.

Broadridge is a buy.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.