Broadridge Financial Solutions: The Essential Business Nobody Knows
Broadridge Financial Solutions ($BR) is a service that many investors use, without even realizing it. This is an essential business, but one most people have never heard of.
In today’s article, we’ll look at what Broadridge does and why it’s an interesting investment.
What Does Broadridge Financial Solutions Do?
Broadridge Financial Solutions distributes investment material to stock owners. The majority of their revenue comes from issuing proxy statements and managing shareholder voting rights.
The company is also involved in numerous important back-end financial activities like stock transfers, SEC disclosures, and trade confirmations.
Broadridge handles the boring-but-necessary elements of being a publically traded company. Big businesses outsource things like proxy voting or corporate action announcements to Broadridge, creating predictable and stable cash flow.
In fact, the company collected $3.3 billion in recurring revenue during 2021.
