Broadridge Raises Quarterly Dividend 11.8% to $1.09

Broadridge Financial Solutions increased its quarterly dividend 11.8% to $1.09 a share from $0.975. The annualized dividend is $4.36, and the increased payment carried an ex-dividend date of September 3, 2026.

Why the dividend changed

The increase followed a fiscal year in which recurring revenue grew 8% and adjusted earnings per share grew 12%. Free-cash-flow conversion reached 110%, which management said helped fund record share repurchases. The board also authorized a new $1.5 billion repurchase program, placing the dividend increase within a broader expansion of capital returns. Broadridge’s fiscal 2026 results provide the clearest operating context for the decision.

The increase is consistent with Broadridge’s stated capital-allocation framework. The company has said it intends to grow the dividend in line with earnings while funding internal investments, pursuing tuck-in acquisitions and returning excess cash through repurchases. That framework ties dividend growth to the earnings base instead of treating the payment as a fixed claim on cash regardless of business performance. Broadridge’s investor presentation filed with the SEC outlines those priorities.

Acquisitions were another call on cash during fiscal 2026. Broadridge acquired CQG, Acolin, iJoin and Signal for an aggregate cash purchase price of $300.2 million, or $282.8 million net of cash acquired, according to its fiscal 2026 Form 10-K. The CQG transaction, completed May 1, 2026, added futures and options execution, algorithmic trading, analytics and market-connectivity capabilities. Broadridge’s CQG announcement said the combined platform provides an integrated trading offering across global futures and options markets. There was no split, merger or spin-off behind the dividend change.

Dividend track record

The payment history shows 18 consecutive years of dividend growth and no annual cut. Broadridge describes the record differently in its corporate reporting, calling this its 20th consecutive annual increase. That longer company figure appears in the fiscal 2026 results release.

Annual payments rose from $2.23 a share in 2020 to $2.43 in 2021, an increase of 9.0%. They subsequently rose 12.4% to $2.73 in 2022, 11.7% to $3.05 in 2023, 10.2% to $3.36 in 2024 and 10.4% to $3.71 in 2025. The five-year annualized dividend growth rate is 10.7%, showing a pattern of regular, mostly double-digit increases rather than irregular special distributions.

The quarterly sequence reinforces that pattern. Payments were $0.88 through June 12, 2025, increased to $0.975 beginning with the September 11, 2025 ex-dividend date, and remained there through June 12, 2026. The latest step to $1.09 began with the September 3, 2026 ex-dividend date.

Is the dividend covered?

The dividend consumes 41% of earnings. That payout ratio leaves most earnings inside the business for operations, investment, acquisitions, debt service and repurchases while still supporting the quarterly distribution. It also aligns closely with management’s policy of increasing the dividend alongside earnings.

SmarterDividends rates the dividend A, with a safety score of 86. The grade means very safe, within the score range of 80-100. The assessment reflects the moderate earnings payout, sustained growth record and absence of a recorded annual cut. Fiscal 2026 free-cash-flow conversion of 110% adds operating context, though conversion is not the same measure as a free-cash-flow payout ratio. Broadridge’s results release reported the conversion figure.

Yield and valuation

At a share price of $162.09, the $4.36 annual dividend produces a 2.67% forward yield. That is above the Technology sector median forward yield of 1.38%, giving Broadridge a higher income rate than the sector benchmark.

SmarterDividends estimates fair value at $171.23 and classifies the shares as fair, with 5% upside to that estimate. The stock’s one-year price return is a decline of 26.0%, which has raised the forward yield because the dividend is measured against a lower share price.

What to watch

Broadridge’s fiscal 2027 guidance calls for constant-currency recurring-revenue growth of 6% to 8%, adjusted earnings-per-share growth of 8% to 12%, free-cash-flow conversion above 100% and closed sales of $290 million to $330 million. Those measures will show whether earnings and cash generation continue to support the company’s policy of growing the dividend in line with earnings. Broadridge’s fiscal 2026 results contain the guidance.

Investors can also track integration of CQG and the other fiscal 2026 acquisitions, along with execution of the new repurchase authorization. These uses of cash compete with dividends within Broadridge’s balanced capital-allocation framework. The next board declaration will establish the subsequent ex-dividend and payment dates.