Rising dividend offsets a modest yield

Article Excerpt

Broadridge’s rising revenue and earnings give it lots for room to keep increasing its dividend. With its higher share price, the current dividend yields a modest 1.4%. Until April 2007, the company was a subsidiary of Automatic Data Processing (ADP) . That’s when ADP set it up as a separate company. Broadridge initially struggled, particularly over fears of big losses at its securities-clearing division during the 2008 credit crisis. However, the stock has rebounded strongly, partly because the company has focused on helping firms communicate with their shareholders, which is less risky than securities clearing. Today, it continues to capitalize on new opportunities to make full use of its existing operations. BROADRIDGE FINANCIAL SOLUTIONS INC. $135 (New York symbol BR; High-Growth Dividend Payer Portfolio, Finance sector; Shares o/s: 116.3 million; Market cap: $15.7 billion; Dividend yield: 1.4%; Dividend Sustainability Rating: Above Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. Broadridge has increased its dividend each year since…