Topic: How To Invest

Dividend Advisor Hotline – Friday, August 20, 2021

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS INC., $174.54, New York symbol BR, is a buy. The company serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. With the October 2021 payment, Broadridge will raise your quarterly dividend by 11.3%. Investors will then receive $0.64 a share, up from $0.575. The new annual rate of $2.56 yields 1.5%. In its fiscal 2021 fourth quarter, ended June 30, 2021, Broadridge’s revenue rose 12.5%, to $1.53 billion from $1.36 billion a year earlier. Excluding one-time items, the company earned $2.19 in the quarter. That’s up 1.9% from $2.15. Broadridge continued to invest to support its growth and that held profits back somewhat. The company stands to gain from the growing push by the financial services industry to improve efficiency and lower costs. New regulations in the U.S. (Regulation Best Interest) and Europe (Shareholder Rights Directive) also brighten its outlook. Longer term, growing consumer demand for passive investment products like ETFs should also benefit Broadridge and its…