The Federal Reserve increased interest rates in March, and last December as well. Without a doubt, interest rates are on the rise.
Many investors are looking to the financial industry to capitalize on this trend. Large-cap banks like Wells Fargo (WFC) and J.P. Morgan (JPM) see increases in their net interest margins as benchmark interest rates move upwards, which will in turn boost earnings-per-share and shareholder returns.
One financial stock that might not immediately come to mind is Computer Services (CSVI). While not a lender itself, Computer Services provides technology solutions to financial institutions and fintech companies.
This stock, while not exceedingly well-known, has a phenomenal dividend history. The company was founded in 1965 and has increased dividends for 45 consecutive years.
Long-time Sure Dividend readers might be curious as to why the company has not been featured in our ‘Dividend Aristocrats in Focus’ series. Recall that in order to be a Dividend Aristocrat, a company must:
Since Computer Services is a small-cap stock with a market capitalization of ~$607 million, it is not in the S&P 500 nor does it meet the index’s size & liquidity requirement. It does meet the Dividend Aristocrats’ most important criterion, though – 25+ years of consecutive annual dividend increases.
You can see the list of all the ‘real’ 51 Dividend Aristocrats here.
Computer Services ranked as a top 10 stock according to The 8 Rules of Dividend Investing in the most recent Sure Dividend Newsletter. This article will analyze the investment prospects of Computer Services in detail.
Business Overview & Current Events
Computer Services provides services for regional banks, including transaction processing and compliance services.
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