Broadridge Financial Solutions Inc. (BR) provides investor communications services and technology-related solutions to the financial services industry. Broadridge was spun off from Automatic Data Processing Inc. (ADP) in 2007, notes Ben Reynolds, editor of Sure Dividend Growth.
Broadridge processes millions of trades a day involving trillions of dollars, provides investor communications which reach 75% of North American households, and also manages shareholder voting in around 120 countries.
Broadridge has also expanded into blockchain solutions and has secured a blockchain patent for proxy processing and repurchase agreements. The company serves clients across the globe, but the majority of its customers are in the US, Canada, and the UK.
The company generates about $5 billion in annual revenue. On Jan. 5, it completed the acquisition of Acolin Group Holdco Ltd., a leading European provider of cross-border fund distribution and regulatory services, for $70 million.
Broadridge has increased earnings per share by 15% on average since 2016, and 11% in the past five years. It has published new three-year growth objectives, which include 8% to 12% adjusted EPS growth, and it is on track to achieve them.
Recommended Action: Buy BR.
