Topic: How To Invest

Power Growth Investor Hotline – Friday, May 5, 2023

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS INC., $152.87, is a buy. The company, symbol BR on New York, serves the investment industry in three main areas: investor communications, securities processing, and transaction clearing. Broadridge is best known for processing and distributing proxies and regulatory filings for nearly every publicly traded U.S. company and mutual fund, both electronically and by surface mail. That segment comprises about three-quarters of the company’s annual revenue. Fees are tied to the volume of communications that Broadridge delivers—and a surge of interest from individual investors in the last few years has led to a wider group of investors holding more stocks and funds. That translates into increased business for Broadridge. Broadridge also has other businesses providing software that handles back-office functions for money managers, broker-dealers, and other capital markets institutions—including trade processing, record-keeping, accounting, and more. In its fiscal 2023 third quarter, ended March 31, 2023, Broadridge’s revenue rose 7.3%, to $1.65 billion from $1.53 billion a year earlier. Excluding one-time items, the company earned…