As the expression goes, “There are riches in niches.” For those firms that can find a foothold in an underserved need, the fortunes can be vast. And our Best Dividend Stocks List pick in the financial services sector is a prime example of this. Our pick has quickly made a name for itself in proxy services and required regulatory needs for publicly traded companies. This niche has allowed it to power through the pandemic with ease.
In the last quarter alone, our pick managed to see a huge 10%+ jump in revenues, while earnings per share surged more than 25%!
The best part is our pick still has more gains ahead. Thanks to shifts toward virtual secured meetings, data analysis, and other online/mobile communications offerings, our pick is poised to win in the post-pandemic future. As work-from-home, mobile, and virtual meetings become the norm, our pick is ready to fill the niche of regulatory requirements after COVID-19. For investors, this will only strengthen our pick’s cash flows and continued dividend growth far into the future.
In the end, our pick is proof that there are “riches in niches” and has the goods to keep powering through the pandemic and beyond.
To summarize, here are five reasons why you should own this stock:
- It has a massive moat and near monopoly in the areas in which it operates, producing more than $4.5 billion in sales for fiscal 2020.
- It has plenty of growth potential thanks to regulation, analytics, and new forays into video communication.
- It has increased its dividend for over 10 years straight with its last increase being over 6.5%.
- Its acquisitions and M&A continue to fuel bolt-on growth.
- It has a healthy payout ratio of 45% and growing yield of 1.66%.
Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary Dividend.com Rating system. Go Premium to read the entire list.
