Topic: How To Invest

Dividend Advisor Hotline – Friday, December 23, 2016

Article Excerpt

PLEASE NOTE: This is our last Hotline for 2016. Our next Hotline will go out on Friday, January 6, 2017. BROADRIDGE FINANCIAL SOLUTIONS INC., $66.08, New York symbol BR, serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. Investor communications makes up 72% of Broadridge’s revenue. Securities processing and transaction clearing make up the remaining 28%. In mid-2016, the company increased its quarterly dividend by 7.6%, to $0.335 a share from $0.3112. The current annual rate of $1.34 yields 2.0%. In the fiscal 2017 first quarter, ended September 30, 2016, Broadridge’s revenue jumped 50.5%, to $895.3 million from $594.7 million. The big increase was because the company purchased the North American Customer Communications business of DST Systems; in July 2016, it paid $410 million in cash for that business. Excluding one-time items, Broadridge earned $43.9 million, or $0.36 a share, in the quarter. That’s up 10.9% from $39.6 million, or $0.33, a year earlier. The stock trades at…