Broadridge Financial Solutions, Inc. BR has seen an 11% increase in its stock price in the past six months. This growth has outpaced the 9% growth of the broader industry, reflecting the company's strong performance and strategic execution across its core business segments.

Broadridge's Strategic Growth Fuels Success

Broadridge's success is largely attributed to its effective implementation of a growth strategy that focuses on governance, capital markets and wealth management. In governance, the company leverages cutting-edge digital communication technologies while enhancing its print and mail services through advanced tech innovations.

In capital markets, Broadridge is expanding its global platform capabilities and employing next-generation solutions to enhance its service offerings. Additionally, in the wealth management sector, the company has developed an all-encompassing wealth management platform known for its superior systems and data integration capabilities.

BR’s Shareholder Value and Long-Term Wealth Building

Broadridge's commitment to returning value to shareholders makes it a solid option for investors aiming for long-term wealth accumulation. Over the past few fiscal years, the company has consistently increased its dividend payments, with $368.2 million paid in fiscal 2024, $331.0 million in 2023 and $290.7 million in 2022. Its robust cash flow supports its ability to maintain stable and growing dividends, providing reliable income to shareholders.

Looking ahead, Broadridge is projected to experience consistent growth in adjusted net income, with our forecasts estimating an 8.3% increase in fiscal 2025, followed by a 6.8% increase in fiscal 2026 and 7.3% growth in fiscal 2027. This steady income growth is expected to further enhance the company’s ability to pay dividends and return value to investors.

Strong Liquidity Position

As of the end of the second quarter of fiscal 2025, Broadridge reported a current ratio of 1.35. Although lower than the industry’s 1.49, a current ratio above 1 indicates that the company is well-positioned to easily meet its short-term obligations, further enhancing its financial stability.

Zacks Rank & Stocks to Consider

BR carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the broader Zacks Business Services sector are UiPath PATH and Limbach Holdings, Inc. LMB, each carrying a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

UiPath has a long-term earnings growth expectation of 19%. PATH delivered a trailing four-quarter earnings surprise of 36.4%, on average.

Limbach Holdingshas a long-term earnings growth expectation of 12%. LMB delivered a trailing four-quarter earnings surprise of 42.3%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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