Broadridge Financial Solutions

In addition to Visa (see page 1), we also like the outlook for these five non-bank, Finance-sector stocks. That includes State Street and T. Rowe Price.


Each of them is a leader in its niche area. That helps cut their risk. They also have done a good job of expanding their profits with attractive acquisitions and improved efficiency....

BROADRIDGE FINANCIAL SOLUTIONS $62.77 (New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge. com; Shares outstanding: 118.5 million; Market cap: $7.5 billion; Dividend yield: 2.1%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing.


Investor communications makes up 72% of Broadridge’s revenue....

CAE INC. $18 (Toronto symbol CAE; Conservative-Growth Dividend Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 268.8 million; Market cap: $4.8 billion; Price-to-sales ratio: 1.9; Dividend yield: 1.8%; Dividend Sustainability Rating: Above Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft....

We advise investors to diversify their Finance sector holdings with non-bank stocks such as the four we analyze below. All are leaders in their niche fields, which helps cut their risk. Three are also spinoffs from larger firms. That has spurred their share prices....

REITMANS (CANADA) LTD., $4.47, symbol RET.A on Toronto, owns 750 women’s clothing stores across Canada.

Those outlets are divided among several brands: Reitmans (327 stores), Penningtons (130), Addition Elle (104), RW & Co. (83), Thyme Maternity (68), Smart Set (23) and Hyda (17)....

WEIGHT WATCHERS INTERNATIONAL, $12.35, symbol WTW on New York, offers weight-loss services in 23 countries. The company promotes a program of lifestyle changes through 36,000 weekly meetings and its website. Oprah Winfrey bought 10% of the company in October 2015. She also joined its board of directors. Her goal has been to promote the company and help it reverse a steady decline over the last few years. Weight Watchers reported a lower-than-expected loss in the latest quarter—and increased its membership for the first time in four years. The number of active subscribers stood at 3.06 million on April 2, 2016. That’s a 4.8% rise from 2.92 million a year ago....

BROADRIDGE FINANCIAL SOLUTIONS $60.43 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 118.8 million; Market cap: $7.2 billion; Dividend yield: 2.0%) serves the investment industry in two main areas: investor communications, and securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada. Excluding one-time items, Broadridge earned $46.5 million in its fiscal 2016 first quarter, which ended December 31, 2015. That’s up 16.5% from $39.9 million a year earlier. Earnings per share rose 18.8%, to $0.38 from $0.32, on fewer shares outstanding. Revenue gained 11.1%, to $638.9 million from $574.6 million. Investor communications makes up 72% of Broadridge’s revenues. Back-office securities processing and transaction clearing make up the remaining 28%; they also provide the company with strong long-term growth prospects in the U.S. and globally....

BROADRIDGE FINANCIAL SOLUTIONS $60.43 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 118.8 million; Market cap: $7.2 billion; Dividend yield: 2.0%) serves the investment industry in two main areas: investor communications, and securities processing and transaction clearing. It processes 90% of all proxy votes in the U.S. and Canada. Excluding one-time items, Broadridge earned $46.5 million in its fiscal 2016 first quarter, which ended December 31, 2015. That’s up 16.5% from $39.9 million a year earlier. Earnings per share rose 18.8%, to $0.38 from $0.32, on fewer shares outstanding. Revenue gained 11.1%, to $638.9 million from $574.6 million. Investor communications makes up 72% of Broadridge’s revenues. Back-office securities processing and transaction clearing make up the remaining 28%; they also provide the company with strong long-term growth prospects in the U.S. and globally....

WESTJET AIRLINES, $20.49, symbol WJA on Toronto, carried a record 5.3 million passengers in March 2016, up 8.4% from 4.9 million a year earlier. The company’s load factor rose to 83.2% from 81.3%. Load factor is the percentage of available seats that are occupied by paying passengers. Revenue passenger miles (the total number of paying passengers on each plane multiplied by the distance travelled in miles) rose 7.2% in the latest quarter....

BROADRIDGE FINANCIAL SOLUTIONS $55.43 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 118.6 million; Market cap: $6.6 billion; Dividend yield: 2.2%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 90% of all proxy votes in the U.S. and Canada. Without one-time items, Broadridge earned $46.5 million in its fiscal 2016 first quarter, which ended December 31, 2015. That’s up 16.5% from $39.9 million a year earlier. Earnings per share rose 18.8%, to $0.38 from $0.32, on fewer shares outstanding. Recurring revenue cuts risk...