Topic: How To Invest

Power Growth Investor Hotline – Friday, August 9, 2024

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS INC., $214.47, 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—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. The company also has other businesses providing software to handle back-office functions for money managers, broker-dealers, and other capital markets institutions. That work includes trade processing, record-keeping, accounting, and more. Broadridge continues to sign new clients to long-term contracts, which cuts its risk. In its fiscal 2024 fourth quarter, ended June 30, 2024,…