We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Retain Broadridge Stock in Your Portfolio
Read MoreHide Full Article
Key Takeaways
Broadridge shares rose 11.9% in a month, outpacing the industry's 5.1% gain and S&P 500's 4.1%.
Payward & Raiffeisen deals expand BR's digital asset governance and reconciliation capabilities.
Broadridge raised its annual dividend 12% to $4.36 and authorized a new $1.5 billion buyback program.
Shares of Broadridge Financial Solutions, Inc. (BR - Free Report) have a decent run over the past month. The stock has risen 11.9% compared with the industry’s 5.1% growth. The Zacks S&P 500 composite moved 4.1% upward during the said time frame.
Image Source: Zacks Investment Research
BR’s first-quarter fiscal 2027 earnings are expected to be down 9.3% year over year. Earnings for fiscal 2027 and 2028 are projected to rise 9.8% and 10.2% year over year, respectively. Revenues are expected to increase 5.02% in fiscal 2027 and 5.34% in fiscal 2028.
Factors That Bode Well for BR
Broadridge’s collaboration with Payward Services is a positive development that strengthens its position in digital asset governance by extending proxy voting and shareholder communications to eligible xStocks holders. The initiative bridges traditional shareholder rights with blockchain-based ownership, potentially expanding Broadridge’s addressable market as tokenized securities gain adoption. With xStocks already supporting more than 500 tokenized assets across equities, ETFs and pre-IPO offerings, the partnership could drive additional demand for Broadridge’s governance, reporting and proxy infrastructure while reinforcing its role in the evolving tokenized securities market.
The company’s expanded agreement with Raiffeisen Bank International is also a positive development that strengthens its recurring technology and solutions business. The deployment of BRx Match will enable CRISP to manage a projected fourfold increase in transaction volumes across 14 markets while improving automation, exception management and regulatory compliance through ISO 20022 support. The cloud-based platform should help BR deepen its relationship with a long-standing client and generate opportunities for further adoption, as financial institutions modernize reconciliation infrastructure and scale operations across global markets.
Broadridge has demonstrated a strong commitment to its shareholders through consistent dividend payments, despite the fluctuations in its cash position. BR paid dividends of $331 million, $368.2 million and $402.3 million in fiscal 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors. At the end of fiscal 2026, the company paid dividends worth $443.5 million.
In the first quarter of fiscal 2027, the board of directors increased Broadridge’s annual dividend by 12% to $4.36 per share and declared a quarterly dividend of $1.09 per share. The board also authorized a new $1.5 billion share repurchase program, replacing the remaining authorization under the previous plan. These actions underscore Broadridge’s commitment to returning capital to shareholders while maintaining flexibility to support EPS growth through share repurchases.
Key Risks to Watch
BR is facing mounting pressure from surging expenses, which are hampering the company’s prospects. The total operating cost increased 7% year over year in 2024, 3.8% year over year in 2025 and 8.4% year over year in 2026, driven by higher distribution expenses, volume-related expenses and the impact of acquisitions and investments.
Moreover, the company operates in a highly competitive environment, with intense competition from financial technology and business process service providers pressuring pricing, innovation and client retention. Meanwhile, volatility in the macroeconomic environment, including changing interest rates, market conditions and economic uncertainty, could weigh on client spending and transaction activity, potentially hampering Broadridge’s growth prospects and financial performance.
Broadridge currently carries a Zacks Rank #3 (Hold).
ALAB has an encouraging earnings surprise history. It has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 17.07%.
Twilio also sports a Zacks Rank of 1 at present. It has an encouraging earnings surprise history, surpassing the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 13.95%.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why You Should Retain Broadridge Stock in Your Portfolio
Key Takeaways
Shares of Broadridge Financial Solutions, Inc. (BR - Free Report) have a decent run over the past month. The stock has risen 11.9% compared with the industry’s 5.1% growth. The Zacks S&P 500 composite moved 4.1% upward during the said time frame.
Image Source: Zacks Investment Research
BR’s first-quarter fiscal 2027 earnings are expected to be down 9.3% year over year. Earnings for fiscal 2027 and 2028 are projected to rise 9.8% and 10.2% year over year, respectively. Revenues are expected to increase 5.02% in fiscal 2027 and 5.34% in fiscal 2028.
Factors That Bode Well for BR
Broadridge’s collaboration with Payward Services is a positive development that strengthens its position in digital asset governance by extending proxy voting and shareholder communications to eligible xStocks holders. The initiative bridges traditional shareholder rights with blockchain-based ownership, potentially expanding Broadridge’s addressable market as tokenized securities gain adoption. With xStocks already supporting more than 500 tokenized assets across equities, ETFs and pre-IPO offerings, the partnership could drive additional demand for Broadridge’s governance, reporting and proxy infrastructure while reinforcing its role in the evolving tokenized securities market.
The company’s expanded agreement with Raiffeisen Bank International is also a positive development that strengthens its recurring technology and solutions business. The deployment of BRx Match will enable CRISP to manage a projected fourfold increase in transaction volumes across 14 markets while improving automation, exception management and regulatory compliance through ISO 20022 support. The cloud-based platform should help BR deepen its relationship with a long-standing client and generate opportunities for further adoption, as financial institutions modernize reconciliation infrastructure and scale operations across global markets.
Broadridge has demonstrated a strong commitment to its shareholders through consistent dividend payments, despite the fluctuations in its cash position. BR paid dividends of $331 million, $368.2 million and $402.3 million in fiscal 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors. At the end of fiscal 2026, the company paid dividends worth $443.5 million.
In the first quarter of fiscal 2027, the board of directors increased Broadridge’s annual dividend by 12% to $4.36 per share and declared a quarterly dividend of $1.09 per share. The board also authorized a new $1.5 billion share repurchase program, replacing the remaining authorization under the previous plan. These actions underscore Broadridge’s commitment to returning capital to shareholders while maintaining flexibility to support EPS growth through share repurchases.
Key Risks to Watch
BR is facing mounting pressure from surging expenses, which are hampering the company’s prospects. The total operating cost increased 7% year over year in 2024, 3.8% year over year in 2025 and 8.4% year over year in 2026, driven by higher distribution expenses, volume-related expenses and the impact of acquisitions and investments.
Moreover, the company operates in a highly competitive environment, with intense competition from financial technology and business process service providers pressuring pricing, innovation and client retention. Meanwhile, volatility in the macroeconomic environment, including changing interest rates, market conditions and economic uncertainty, could weigh on client spending and transaction activity, potentially hampering Broadridge’s growth prospects and financial performance.
Broadridge currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
A couple of better-ranked stocks in the Internet - Software industry are Astera Labs, Inc. (ALAB - Free Report) and Twilio (TWLO - Free Report) .
Astera Labs sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ALAB has an encouraging earnings surprise history. It has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 17.07%.
Twilio also sports a Zacks Rank of 1 at present. It has an encouraging earnings surprise history, surpassing the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 13.95%.