Arguably, one of the best business models happens to be a marketplace. With it, the marketplace operator is able to realize plenty of profits with relatively little overhead. Afterall, they aren’t the ones responsible for holding inventory or products; they’re the place to buy/sell goods. In the modern age, spices have given way to digital assets and securities. But the idea is the same.
And that has meant big profits for our Best Dividend Stocks List pick in the financial sector.
Our pick is one of the largest exchange operators in the world, with millions of shares and derivatives traded on its various market sites. The beauty of our pick is that it collects listings and other fees for companies and traders to use its exchanges, no matter what the overall economy or market is doing. This fact has provided our pick with a steady source of revenues and profits throughout its history.
The real win is that our pick continues to be forward thinking in its nature.
As one of the first exchanges to focus on computerized trading, our pick continues to be home to some of the most innovative tech and healthcare stocks. That focus on innovation continues today, with our pick moving headfirst into a variety of data-driven services. This now includes a hefty amount of Software as a Service (SaaS) applications, data-mining and new risk control services. All of these higher-margined products have provided a real boost to our pick’s bottom line and continued to support its robust cash flows, which have translated into a steady diet of dividend increases and buybacks, even during the dark period of the COVID-19 crisis.
All in all, our pick continues to innovate, profit and reward its investors.
To summarize, here are five reasons why you should own this stock:
- One of the largest securities exchange operators in the world.
- Big winner from increased volatility and trading volumes – no matter what direction the market is taking.
- New forays into technology, data, indexing and other services provide extra growth opportunities. Recurring revenues jumped by more than 20% year-over-year last quarter alone.
- Has continued to reward shareholders – returning more than $200 million in dividends and buybacks in the first quarter.
- Healthy payout ratio of 34% and growing yield of 1.1%.
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.
