Shares in the operator of the Toronto and Montreal exchanges have been undervalued for quite some time, but with today's earnings release it seems that the shares should finally get some positive traction and interest from investors. Earnings per share increased from 56 cents to 68 cents this quarter, a very healthy jump! Also, more importantly for anyone interested in some income, the dividend was increased to 1.60 per share annually, a yield of roughly 5 percent!
The shares recently jumped through 34 dollars per share, and it appears that they have reason to keep moving higher. By increasing the dividend the executives are showing that they have confidence in the business and its new ventures, which include an increased emphasis on derivatives trading and on energy futures. Clearly diversification efforts away from simply equity or stock business and more of a focus on energy and commodities appears to be boding well, especially considering the worldwide investment community is already beginning to see Canada as an energy and materials hub.
For some excellent exposure to the finance industry without more exposure to banks and insurance, definitely give TMX Group a look, it trades under the symbol X in Toronto.
(Legal Disclosure - I own shares in TMX Group).