When investors look towards “fintech,” they often gravitate toward digital payment providers, insurance agencies using complex algorithms or other similar future-looking technologies in the world of finance. The focus is typically on smaller growth stocks. However, fintech is truly a wide moat, and one that is dominated by large players, often in boring niches. But as they say, there are riches in niches.
And this includes our Best Dividend Stocks List pick in the sector.
Our pick has quickly grown to become a fintech superstar. Regulatory compliance is a major issue in the investing community and our stock pick does it all. This includes boring items like providing proxy services, running shareholder meetings and distributing prospectuses for investment. In fact, 75% of all investors – both big and small – receive communications from our pick. But our pick isn’t just a one-trick pony. It expands its regulatory reach into other businesses as well. This includes processing settlements for more than 10 trillion stock and bond trades per day.
These main businesses have allowed our firm to reap plenty of steady cash flows and reward shareholders with buybacks/dividend increases.
The future looks rosy for our pick as well. With new areas such as security, data analytics, Software as a Service (SaaS) for wealth management and a host of other digital offerings for a wide variety of sectors, our pick has continued to grow at a rapid pace.
The proof is in the pudding. Shareholders continue to see rewards and a high total return from our pick.
To summarize, here are five reasons why you should own this stock:
- Massive moat and near monopoly in the areas in which it operates. Sales grew by more than 10% alone during the third quarter!
- Plenty of growth potential, thanks to regulation, analytics and new forays into video communication.
- A whopping 98% client retention with recurring fee revenues.
- Continued growth into tangential areas of compliance, such as wealth management and financial advisors.
- Healthy payout ratio of 45% and growing yield of 1.35%.
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