Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of financial intermediary BGC Partners
So what: The company, which helps facilitate the trading of bonds and stocks, has seen strength in its business due to higher trading volumes. Instability and higher volatility in Europe, and the U.S. government printing more bonds, are the primary reasons CEO Lutnick sees continued growth for BGC.
Now what: Today's move higher is more or less the same as analysts coming out and upgrading the stock. BGC doesn't get a lot of exposure, but it does have a monstrous yield north of 9%. The big question last night was whether the yield was sustainable, and the short answer from Mr. Lutnick was yes. This is especially important since BGC's employees own 37% of all outstanding shares and they rely on that dividend income. Since BGC owns no physical product but merely services transactions, I also feel the dividend is sustainable and I think you can expect an above average dividend payout for many years to come.
Craving more input? Start by adding BGC Partners to your free and personalized watchlist so you can keep up on the latest news with the company.