Fintech is one of the hottest trends these days. The combination of using technology to transform consumer and corporate finance has the potential to change the game – and there’s plenty of different stocks that operate in the fintech sector. But as traders’ focus on the new and “hot” fintech firms, some older, more established stocks in the sector continue to rack up revenues and profits.
That includes our Best Dividend Stocks List pick in fintech.
Our pick operates in the boring niche of regulatory compliance for publicly traded firms, including providing proxy services, running shareholder meetings and distributing prospectus for investment. While that may not seem too “technology” based, these days our pick offers a whole host of data and services to help firms to meet required rules. And in the age of COVID-19, this includes all sorts of virtual proxy votes, annual meetings and other necessary compliance issues.
This has continued to provide our pick with a steady stream of high-margined revenues throughout its history. Our pick is expected to pull in more than $5 billion in sales this year alone.
The best part is that our pick continues to find more ways to boost margins and add additional fintech revenues to its base.
Our pick is also one of the leading firms that works with settlement compliance for trades, and has seen explosive growth as more investors have entered the market. Meanwhile, all of its businesses throw off plenty of useful data. Our pick has continued to allow firms to access this trading, proxy and compliance data for hefty fees.
In the end, our pick provides an established and necessary fintech stock that continues to see ongoing growth and big dividends.
To summarize, here are five reasons why you should own this stock:
- Massive moat and near monopoly in the areas in which it operates, with an estimated $5+ billion in sales for fiscal 2021
- Plenty of growth potential, thanks to regulation, analytics and new forays into video communication
- A whopping 98% client retention with recurring fee revenues
- Recently affirmed its dividend payout amid the pandemic chaos
- Healthy payout ratio of 45% and growing yield of 1.48%
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.
