Saturday, March 3, 2012

BGC Partners, Inc. - BGCP

Stock ticker BGCP pays a 17 cent quarterly dividend, which is currently an 8.98% dividend yield. With shares selling at $7.57 per share I don't see how anyone would not want to get in on this financially solid company. BGCP's CEO Howard W. Lutnick was on television the other day stating that their dividend is safe and healthy. He could not see a reason why they would not be able to continue paying the 17 cents per share.

BGC Partners, Inc. is a global financial intermediary to the financial markets specializing in the brokering of a range of financial products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, structured products and other instruments. They also provide a range of services, including trade execution, broker-dealer services, clearing, processing, information, and other back office services, to a range of financial and non-financial institutions. Through their eSpeed and BGCantor Market Data brands, they also offers financial technology solutions, market data, and analytics related to select financial instruments and markets. BGCP's customers include banks, broker-dealers, investment banks, trading firms, hedge funds, governments and investment firms.

BGCP has a market cap of $999.75 million dollars, P/E of 53.71 and a current 52 week average of $5.40 to $9.94. They are 43% institutionally owned which is nice to see with a semi-smaller company. BGCP has 11% inside ownership, which is a clear sign that the dividend will not be cut. I do not envision the stock price falling due to BGCP having $3.00 of cash on hand per share. They have beat the market on earnings during the last few quarters. I think they will have continued success if the market continues to either hold or rise, which in that case the dividend gives you some downside protection.

I am not a fan of BGCP just because the CEO was on television. I like BGCP for their potential long term dividend paying attributes. Also, they are a major brokerage firm. Whether the economy is good or bad BGCP with shine due to the millions of transactions they facilitate. This one fact alone will ultimately bode well for your Roth IRA stock portfolio.

Yes, you will want to have the typical dividend aristocrats as the driving forces within your Roth IRA stock portfolio, for example JNJ, WMT, or KO, however it is perfectly okay to have a not so well known highly profitable company like BGCP added into the mix.

If you are in your 20s or 30s it is okay to take a chance on a company like BCGP. If you are in your late 50s or 60s it is safe to invest in BGCP due to their consistent quarterly dividend which will provide you with steady income as you head into retirement. Just think smart and be confident about your decision.

Please perform your own due diligence by visiting BGC Partners, Inc. homepage, here. While on their main page scroll down to watch a 30 second introduction video on the left hand side. Visit their Investor Relations page, here and listen to BGC's Q4 2011 Earnings Conference Call. What a great quarter! Also, check out these great videos from YouTube. Thanks for your time and support. Always remember, I am not associated with any company I blog about, I'm just looking out for the Common Man! Have a great day!


No comments:

Post a Comment

Share

Widgets

Subscribe for FREE!