Exploring the dividend history, yield, growth, and sustainability of Broadridge Financial Solutions Inc (BR, Financial)
Broadridge Financial Solutions Inc(BR) recently announced a dividend of $0.8 per share, payable on 2023-10-05, with the ex-dividend date set for 2023-09-14. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Broadridge Financial Solutions Incs dividend performance and assess its sustainability.
What Does Broadridge Financial Solutions Inc Do?
Broadridge Financial Solutions, which was spun off from ADP in 2007, is a leading provider of investor communications and technology-driven solutions to banks, broker/dealers, asset managers, wealth managers, and corporate issuers. Broadridge is composed of two segments: investor communication solutions and global technology and operations.
A Glimpse at Broadridge Financial Solutions Inc's Dividend History
Broadridge Financial Solutions Inc has maintained a consistent dividend payment record since 2007. Dividends are currently distributed on a quarterly basis. Broadridge Financial Solutions Inc has increased its dividend each year since 2007. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 16 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Broadridge Financial Solutions Inc's Dividend Yield and Growth
As of today, Broadridge Financial Solutions Inc currently has a 12-month trailing dividend yield of 1.54% and a 12-month forward dividend yield of 1.69%. This suggests an expectation of increase dividend payments over the next 12 months.
Over the past three years, Broadridge Financial Solutions Inc's annual dividend growth rate was 10.30%. Extended to a five-year horizon, this rate increased to 13.20% per year. And over the past decade, Broadridge Financial Solutions Inc's annual dividends per share growth rate stands at an impressive 14.90%.
Based on Broadridge Financial Solutions Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Broadridge Financial Solutions Inc stock as of today is approximately 2.86%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Broadridge Financial Solutions Inc's dividend payout ratio is 0.55.
Broadridge Financial Solutions Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Broadridge Financial Solutions Inc's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Broadridge Financial Solutions Inc's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Broadridge Financial Solutions Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Broadridge Financial Solutions Inc's revenue has increased by approximately 9.60% per year on average, a rate that outperforms than approximately 54% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Broadridge Financial Solutions Inc's earnings increased by approximately 10.30% per year on average, a rate that outperforms than approximately 50.4% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 7.40%, which outperforms than approximately 41.16% of global competitors.
Next Steps
In conclusion, Broadridge Financial Solutions Inc presents an appealing dividend profile with its consistent dividend payments, strong growth rate, sustainable payout ratio, high profitability, and robust growth metrics. These factors collectively suggest that Broadridge Financial Solutions Inc is well-positioned to continue its dividend payments in the foreseeable future, making it an attractive consideration for dividend-focused investors.
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