We all know the expression – “the house always wins.” When it comes to casinos, the odds are always in favor of the people running the games rather than people betting on the roulette wheel. They are going to make money no matter what. When it comes to Wall Street, the “house” is very much the operators of the various exchanges and marketplaces that facilitate the trading of securities. No matter what the direction of a security is, the exchange operators are going to profit from trades.
For our Best Dividend Stocks List pick in the sector, this simple fact has resulted in plenty of cash flows, revenues and profits since its founding. And with the current increase in trading activity, high volatility and explosion in derivatives trading, our pick has continued to see record profits during the pandemic. In fact, total profits jumped by more than 20% alone just last year, while revenues surged by 15%!
The best part is our pick continues to find ways to boost profits further.
Our pick continues to plow in tangential services such as financial data aggregation/mining, consulting, technology, new marketplaces like digital currencies, and even financial fraud protection. As one of the largest hubs for technology stocks and marketplaces in the world, these offerings are already attracting plenty of attention from customers. These areas also come with higher margins and long runways to increase growth and profits further.
For investors, our exchange pick is one of the best ways to play the “house,” score hefty cash flows and growing dividends.
To summarize, here are five reasons why you should own this stock:
- One of the largest securities exchanges, pulling in nearly $3 billion in sales last year. A 15% overall increase!
- Big winner from increased volatility and trading volumes – no matter what direction the market is taking.
- New forays into technology, data and other services provide extra growth opportunities.
- Has grown its dividend for more than five years straight, including a 4%+ increase this year.
- Healthy payout ratio of 31% and growing yield of 1.4%.
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.