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Here's Why You Should Retain Broadridge Stock in Your Portfolio
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Key Takeaways
Broadridge shares rose 20.9% in three months as fiscal 2027 revenues are projected to increase 5.02%.
BR is expanding digital asset offerings across wealth management, tokenized markets and G7 repo.
BR raised its annual dividend 12% to $4.36 & authorized a new $1.5 billion share repurchase plan.
Shares of Broadridge Financial Solutions, Inc. (BR - Free Report) have risen 20.9% over the past three months compared with the industry’s 27.1% growth. The Zacks S&P 500 composite moved 3.5% 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 Bodes Well for BR
Broadridge’s expansion of its digital assets platform into the U.S. wealth management market marks a step toward integrating cryptocurrencies and tokenized securities with traditional investments. Supporting both advisor-led and self-directed models, the platform offers wealth managers unified tools for trading, custody, reporting and compliance. Its partnerships with Anchorage Digital and Galaxy Digital further strengthen its digital asset capabilities and reflect the growing role of digital assets in mainstream wealth management.
The company’s launch of DLX expands its digital asset infrastructure to connect tokenized and traditional financial markets. By supporting issuance, trading, settlement, custody, servicing and governance across multiple asset classes, DLX offers institutions a more integrated approach to tokenized markets. Its always-on, multi-chain architecture builds on Broadridge’s Distributed Ledger Repo (“DLR”) experience and supports the growing adoption of tokenization in institutional finance.
BR’s expansion of its DLR solution to include G7 securities marks an important step toward enabling cross-border tokenized repo and collateral transactions. By using atomic settlement to synchronize securities and cash, the platform aims to reduce settlement risk, operational complexity and friction while improving liquidity and collateral mobility. The expansion also demonstrates how tokenized infrastructure is increasingly being applied to institutional financing and global capital markets.
Broadridge’s collaboration with Payward Services to support proxy voting for eligible xStocks holders represents an important development in connecting tokenized equities with traditional shareholder rights. By enabling eligible token holders to access proxy materials and submit voting preferences through a digital process, the partnership brings corporate governance capabilities to blockchain-based investing. The initiative highlights the growing effort to ensure that tokenized securities offer not only digital access and flexibility but also established investor communication, governance and voting functionality.
The company has demonstrated a strong commitment to its shareholders through consistent dividend payments, despite 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 for BR
BR is facing mounting pressure from surging expenses, which is hampering the company’s prospects. The total operating cost increased 7% year over year in 2024, 3.8% year over year in fiscal 2025 and 8.4% year over year in 2026, driven by higher distribution expenses, volume-related expenses, as well as 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).
It has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 17.07%.
Paycom Software also sports a Zacks Rank of 1 at present. It has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering 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 risen 20.9% over the past three months compared with the industry’s 27.1% growth. The Zacks S&P 500 composite moved 3.5% 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 Bodes Well for BR
Broadridge’s expansion of its digital assets platform into the U.S. wealth management market marks a step toward integrating cryptocurrencies and tokenized securities with traditional investments. Supporting both advisor-led and self-directed models, the platform offers wealth managers unified tools for trading, custody, reporting and compliance. Its partnerships with Anchorage Digital and Galaxy Digital further strengthen its digital asset capabilities and reflect the growing role of digital assets in mainstream wealth management.
The company’s launch of DLX expands its digital asset infrastructure to connect tokenized and traditional financial markets. By supporting issuance, trading, settlement, custody, servicing and governance across multiple asset classes, DLX offers institutions a more integrated approach to tokenized markets. Its always-on, multi-chain architecture builds on Broadridge’s Distributed Ledger Repo (“DLR”) experience and supports the growing adoption of tokenization in institutional finance.
BR’s expansion of its DLR solution to include G7 securities marks an important step toward enabling cross-border tokenized repo and collateral transactions. By using atomic settlement to synchronize securities and cash, the platform aims to reduce settlement risk, operational complexity and friction while improving liquidity and collateral mobility. The expansion also demonstrates how tokenized infrastructure is increasingly being applied to institutional financing and global capital markets.
Broadridge’s collaboration with Payward Services to support proxy voting for eligible xStocks holders represents an important development in connecting tokenized equities with traditional shareholder rights. By enabling eligible token holders to access proxy materials and submit voting preferences through a digital process, the partnership brings corporate governance capabilities to blockchain-based investing. The initiative highlights the growing effort to ensure that tokenized securities offer not only digital access and flexibility but also established investor communication, governance and voting functionality.
The company has demonstrated a strong commitment to its shareholders through consistent dividend payments, despite 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 for BR
BR is facing mounting pressure from surging expenses, which is hampering the company’s prospects. The total operating cost increased 7% year over year in 2024, 3.8% year over year in fiscal 2025 and 8.4% year over year in 2026, driven by higher distribution expenses, volume-related expenses, as well as 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 Paycom Software (PAYC - 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.
It has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 17.07%.
Paycom Software also sports a Zacks Rank of 1 at present. It has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average surprise of 13.95%.