Two ways to diversify your Finance holdings

Article Excerpt

We recommend all investors balance their Finance sector holdings with top non-bank stocks. For example, these two U.S. firms are leaders in their niche markets and have long histories of raising their dividends. BROADRIDGE FINANCIAL SOLUTIONS INC. $162 is a buy. The company (New York symbol BR; High-Growth Payer Portfolio, Finance sector; Shares outstanding: 118.0 million; Market cap: $19.1 billion; Dividend yield: 1.8%; Dividend Sustainability Rating: Above Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. Broadridge raised its quarterly dividend by 13.3% with the October 2022 payment, to $0.725 a share from $0.64. The new annual rate of $2.90 yields 1.8%. In its fiscal 2023 third quarter, ended March 31, 2023, Broadridge’s revenue rose 7.8%, to $1.65 billion from $1.53 billion a year earlier. Revenues were higher in the quarter due to net new business from both its Investor Communication Solutions, and Global Technology and Operations segments. Excluding one-time items, its earnings rose by 7.0%, to $244.5 million,…