This business sits at the center of global investing, providing the benchmarks and analytical tools that asset managers, pension funds, and insurers rely on every day. Its dividend has grown at a 14% compound annual rate over the past three years. That pace ranks in the top 20% of all dividend paying stocks we track. This growth rate, more than the current yield, is what earns this name a serious look for long term investors.
The company operates as a critical utility for the investment industry. It licenses benchmarks and analytical platforms that clients build entire portfolios around, creating high switching costs and durable pricing power. Recent growth has come from strong demand for index subscriptions, rising fees tied to fund flows, and expansion into newer areas like private market analytics. Softness in a few product lines tied to real estate markets poses some near term drag, but the core benchmarking business remains resilient. This mix of steady demand, high recurring revenue, and expanding new markets supports a dividend that can keep growing.
This name was recently added to our Dividend Growth Stocks Portfolio because it pairs a top tier dividend growth rate with a business model built on recurring, subscription like revenue. Its pricing power and expanding growth markets fit well with our mandate to find companies capable of compounding dividends for years to come.
