In my September 14 guest post at Dividend Power, I focus on how Nasdaq (NDAQ) is reworking future capital markets.
I first reviewed NDAQ on this October 21, 2021 submit at which era I made a decision to not provoke a place.
On June 12, 2023, nonetheless, NDAQ introduced that it entered right into a definitive settlement to amass Adenza from Thoma Bravo for $10.5B in money and shares of widespread inventory; Adenza gives mission-critical danger administration and regulatory software program to the monetary providers business. The rationale for the acquisition is to speed up NDAQ’s strategic imaginative and prescient to develop into a number one expertise supplier to the worldwide monetary system.
I dislike the diploma of leverage NDAQ is taking over and the downgrade in its home unsecured long-term debt credit score rankings. Nonetheless, I agree with administration’s technique of creating transformational acquisitions versus small acquisitions that won’t materially affect the corporate’s course.
Regardless of the numerous enhance in debt, NDAQ has demonstrated its capability to scale back leverage. NDAQ is dedicated to decreasing leverage to 4.0x in 18 months and to three.3x in 36 months at which era I count on score upgrades from Moody’s and S&P World.
Given my tackle NDAQ’s long-term outlook, I initiated a 500 share place on June 12 in a ‘Core’ account inside the FFJ Portfolio. On July 19, I added to my publicity with the acquisition of one other 100 shares. My whole NDAQ publicity is at the moment 601 shares; the 1 share was acquired by way of computerized dividend reinvestment.
I want you a lot success in your journey to monetary freedom!
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Disclosure: I’m lengthy NDAQ.
Disclaimer: I have no idea your circumstances and don’t present individualized recommendation or suggestions. I encourage you to make funding choices by conducting your analysis and due diligence. Seek the advice of your monetary advisor about your particular state of affairs.
I wrote this text myself and it expresses my very own opinions. I don’t obtain compensation for it and haven’t any enterprise relationship with any firm talked about on this article.
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