S&P Global: A High Quality, Diversified Company with Strong Growth and Dividends
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SPGI operates 5 main business segments with diversified, high margin revenue streams including market data, credit ratings, commodity data, auto data, and indices.
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The company has a strong history of earnings growth, increasing EPS in 16 of the last 20 years. It also generates abundant free cash flow.
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SPGI is a Dividend King with a 50+ year history of dividend increases. The dividend has compounded rapidly though yields only 1% now due to huge stock price appreciation.
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With expected EPS growth of 15% annually over the next couple years, SPGI's dividend also has potential to grow at a similar clip.
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Despite its quality and growth, SPGI trades at a reasonable 25-28x forward P/E multiple, in line with historical averages. The stock remains attractive even after its recent rally.