Financial Marketplace Operator With Seven Years of Dividend Growth Solidifies Position on Best Dividend Stocks List
Aaron Levitt Sep 30, 2020
Since the beginning of commerce, we’ve used marketplaces to exchange goods, ideas and services. These days, marketplaces take a variety of forms – both physical and digital. From a business model point of view, owning a marketplace can be amazingly lucrative. After all, after the initial expense of creating the market, owners just sit back and collect a check from sellers. And that power has continued to drive our Best Dividend Stock List pick in the Financial Sector.
Our pick owns and operates one of the largest exchanges in the trading world. Each day, investors come to buy and sell shares, derivatives and other securities on our pick’s marketplace. And for that, our pick collects a hefty fee.
What makes our pick special has been its focus on innovation. As an early adopter and leader in computerized trading, our pick is home to some of the largest technology stocks on the planet. Meanwhile, our pick has continued to expand into data collection and analysis. The focus on technology and new services has continued to benefit its bottom line and boost its already hefty margins further.
For investors, this has been a boon to cash flows, profits and juicy dividend growth. Last quarter alone, margins expanded to more than 50% and earnings per share jumped by nearly 40%!
Perhaps the best part is that sort of high growth should continue for our pick.
As technology stocks continue to dominate fund flows, listings and importance in society, our pick’s marketplace becomes even more valuable versus rivals. This will only drive revenues, fees and growth further. For investors, our pick represents a high growth play that pays plenty of dividends.
To summarize, here are five reasons why you should own this stock:
- One of the largest securities exchanges, pulling in nearly $700 million in sales last quarter – that’s a 12% year-over-year increase!
- Recession-resistant revenues, as it doesn’t matter if stocks are rising or falling.
- New forays into technology, data and other services provide extra growth opportunities.
- Has grown its dividend over the last seven years straight including a 4%+ increase this year.
- Healthy payout ratio of 33% and growing yield of 1.6%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to find out the entire list.
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