Broadridge Financial Solutions, Inc. (NYSE:BR) Raises Dividend to $1.09 Per Share

Key Points

• Broadridge raised its quarterly dividend 11.8% to $1.09 per share, payable October 5 to shareholders of record September 3. The annualized dividend is $4.36, yielding approximately 2.6%, and marks the company’s 18th consecutive year of dividend increases.
• The dividend appears well covered, with a current payout ratio of 42.2%; analysts expect earnings of $10.47 per share next year versus the $3.90 annual dividend.
• Broadridge exceeded quarterly expectations with adjusted EPS of $3.82 and revenue of $2.22 billion, up 7.5% year over year. Analysts maintain a “Moderate Buy” consensus and an average price target of $221.57, despite several recent target reductions.

Broadridge Financial Solutions, Inc. (NYSE:BR - Get Free Report) announced a quarterly dividend on Monday, August 3rd. Shareholders of record on Thursday, September 3rd will be given a dividend of 1.09 per share by the business services provider on Monday, October 5th. This represents a c) annualized dividend and a yield of 2.6%. The ex-dividend date is Thursday, September 3rd. This is a 11.8% increase from Broadridge Financial Solutions's previous quarterly dividend of $0.97.

Broadridge Financial Solutions has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 18 consecutive years. Broadridge Financial Solutions has a payout ratio of 42.2% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Broadridge Financial Solutions to earn $10.47 per share next year, which means the company should continue to be able to cover its $3.90 annual dividend with an expected future payout ratio of 37.2%.

Broadridge Financial Solutions Price Performance

Shares of BR stock traded up $11.25 during trading hours on Tuesday, reaching $168.59. The company's stock had a trading volume of 2,516,811 shares, compared to its average volume of 1,436,515. Broadridge Financial Solutions has a fifty-two week low of $133.83 and a fifty-two week high of $271.91. The firm's 50 day simple moving average is $146.94 and its 200-day simple moving average is $164.00. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.97. The company has a market capitalization of $19.50 billion, a price-to-earnings ratio of 18.05 and a beta of 0.87.

Broadridge Financial Solutions (NYSE:BR - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The business services provider reported $3.82 EPS for the quarter, topping analysts' consensus estimates of $3.76 by $0.06. Broadridge Financial Solutions had a return on equity of 40.14% and a net margin of 15.03%.The company had revenue of $2.22 billion during the quarter, compared to analysts' expectations of $2.17 billion. During the same quarter in the previous year, the firm earned $3.55 EPS. Broadridge Financial Solutions's revenue was up 7.5% on a year-over-year basis. Broadridge Financial Solutions has set its FY 2027 guidance at 10.370-10.750 EPS. Sell-side analysts forecast that Broadridge Financial Solutions will post 9.55 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have commented on BR. Needham & Company LLC lowered their target price on Broadridge Financial Solutions from $255.00 to $230.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Royal Bank Of Canada restated an "outperform" rating and issued a $200.00 price target on shares of Broadridge Financial Solutions in a research note on Monday, June 22nd. Weiss Ratings lowered shares of Broadridge Financial Solutions from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, May 11th. DA Davidson decreased their price target on shares of Broadridge Financial Solutions from $228.00 to $214.00 and set a "buy" rating on the stock in a report on Tuesday, May 5th. Finally, UBS Group lowered their price objective on shares of Broadridge Financial Solutions from $250.00 to $165.00 and set a "neutral" rating for the company in a research report on Monday, May 4th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $221.57.

Broadridge Financial Solutions Company Profile

Broadridge Financial Solutions is a global fintech company that provides technology-driven solutions and outsourcing services to the financial services industry. The firm's core offerings center on investor communications, securities processing and post-trade services, and technology platforms that support capital markets and wealth management operations. Broadridge positions itself as a provider of mission-critical infrastructure that helps financial institutions manage regulatory requirements, investor engagement and operational complexity.

Products and services include proxy and shareholder communications, investor disclosure and digital communications, proxy voting and tabulation, clearing and settlement support, trade processing and reconciliation, and a range of software-as-a-service platforms for wealth and asset managers.

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