The domestic and global financial sector has undergone enormous growth since the 2007-2008 financial
crisis. The great recession cast a shadow over the industry, but it has also given birth to new strategies,
instruments, and investment products. For example, the past decade has seen the popularity of the
exchange-traded fund (ETF) explore compared to the relative decline of the mutual fund.
This financialization trend is great news for TMX Group (TSX:X). The Toronto-based company operates
exchanges, markets, and clearinghouses primarily for capital markets in Canada and around the world.
Shares of this top financial and tech stock have increased marginally in the year-to-date period. The
stock is down 3.3% compared to the same time in 2021.
TMX Group is set to release its third quarter fiscal 2022 earnings in the first half of November. In Q2
2022, the company delivered revenue growth of 17% to $286 million. Meanwhile, adjusted diluted
earnings per share dipped 1% to $1.88. The company has wrestled with challenging conditions in the
financial space due to rising interest rates and choppy markets. Despite that, TMX Group has achieved
growth on the back of revenue growth in Trayport and Derivatives Trading and Clearing.
Shares of TMX Group currently possesses an attractive price-to-earnings ratio of 13. This stock last paid
out a quarterly dividend of $0.83 per share. That represents a 2.5% yield. Keep in mind that TMX Group
is a dividend aristocrat, having delivered at least five straight years of dividend growth.
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