New contracts lift its profitability

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS INC. $206 is a buy. The company (New York symbol BR; High-Growth Payer Portfolio, Finance sector; Shares outstanding: 117.7 million; Market cap: $24.2 billion; Dividend yield: 1.6%; Dividend Sustainability Rating: Above Average; www.broadridge.com) is best known for processing and distributing proxies and regulatory filings, both electronically and by surface mail, for nearly every publicly traded U.S. company and mutual fund. Broadridge last raised your quarterly dividend with the October 2023 payment. Investors now receive $0.80 a share, up 10.3% from $0.725. The new annual rate of $3.20 yields 1.6%. The company continues to sign new clients to long-term contracts. In its fiscal 2024 first quarter, ended September 30, 2023, revenue rose 11.5%, to $1.43 billion from $1.28 billion a year earlier. Earnings also gained 29.8%, to $1.09 from $0.84. Broadridge Financial is a buy. buy. …