Welcome back everybody to white board finance as you know by now My name is Marko and I'm here to help you master your money and build your wealth

Today we're talking about a very hot topic We're talking about the block chain baby So block chain is kind of synonymous with crypto currency and especially with Bitcoin So there's a lot of buzz around this technology even though it's been around for a number of years now I think it's finally starting to come into the mainstream

So in this video we're going to go over the five best block chain stocks for 2018 Stay tuned Number one is Broadridge Financial Solutions Broadridge is my first pick because they've already worked with companies and other banks that are using block chain technology They've completed a successful pilot test of a block chain based technology in collaboration with two other large European banks And this was in October so only about 3 4 months ago they've already started completing transactions using their own block chain based technology

And I think that this is putting them a step ahead everyone else Their technology helps to automate operations enhance audit ability and increase both efficiency and speed So essentially they're taking these very complicated financial transactions and making them very transparent and efficient for everyone to see So I think that's a good thing because it's giving them more credibility in terms of being transparent and open with their customers and with their clients This isn't Broadridge his first rodeo into block chain either

The company partnered with JP Morgan in 2016 to successfully test this technology with shareholder proxy voting So for those of you that are familiar with annual reports and voting because you you're a shareholder in a company this is essentially what that is So their goal again is to make this more transparent and easier

So considering Broadridge was already the largest US provider of proxy voting services it made sense for it to step into this market Let's take a look at the fundamentals Broadridge is growing its bottom line and a pretty solid rate they have earnings coming in at three dollars and 13 cents a share in 2017 and it's expected to increase to four dollars and 14 cents a share by 2019 Broadridge has two factors working in its favor that justify its price and higher evaluations in the future

The first is that they're a leader within their industry So essentially they have 80 percent of outstanding shares for Investor Communications actually are processed by Broadridge Think about that for a second 80 percent of every outstanding share of every stock out there that communication is processed through Broadridge That's essentially 80 percent of the U

S market you guys That is a huge chunk Also all top 10 global banks are its clients Which again leads back to that first point that they are a leader in their industry

Second their client retention rate is at an astounding 98 percent That's one of the most difficult tasks you guys to be able to retain the clients that you spend so many marketing dollars to get So pretend that you're like AT&T and Verizon you market market market You spent all this money to get Marko as a client and he leaves after one month because he's not happy with the service You spent all that marketing dollars and all that time and energy to acquire a client and then they leave

So at a 90 percent client retention rate that is really good And I see there being a huge part of their valuation for the future Broadridge also offers a one point six percent dividend yield and they've actually raised that year over year So I know one point six percent isn't the highest dividend yield in the world but I'm actually just looking at the big picture If they're able to raise this consistently that shows that either their money management is really good that there are corporate management is really good or that overall that their cash is very strong

So it's a combination of those three things But any company that's consistently raises dividends is pretty healthy in my opinion Obviously the longer they've done that the better and Broadridge has done that over the past few years their one year return has been about thirty six point four eight percent and their five year return has been about 289 percent So that means over the course of five years if you started investing in Broadridge you've almost tripled your money you guys So those are incredible returns especially for a financial industry or financial sector company

Broadridge easily checks out on fundamentals and future growth So this is why I think it's going to be a great block chain start in 2018 and beyond Number two MasterCard MasterCard announced that it's now opening up its block chain to potential merchants and banks as an alternative and potentially more efficient method of paying for goods and services MasterCard is also targeting cross-border payments between businesses as the purpose for its block chain which can only be used by invitation at this point MasterCard's block chain operates independently of a crypto currency and instead it accepts payments in traditional local money which is seen by some as a positive

For one Businesses could cut costs by using the block chain to send cross-border payments which usually pass through several foreign banks along the way which means they incur fees at every stop So MasterCard block chain however would cut out those middlemen and connect to purchasers bank directly to that of the supplier This would remit the payment more efficiently and possibly faster Let's take a look at their fundamentals or some numbers over the past few years

Their one year return has been forty two point two percent and their five year return has been about 187 percent which is great The number of major online retailers accepting payment in Bitcoin dropped to just 3 in 2017 which I think is kind of funny compared to 483 who accept MasterCard and Visa So I don't really see this as a threat to MasterCard just yet And I'm talking about crypto currency That's something you should be aware of

But in the long run I think that MasterCard will adopt a block chain and they will be a great player in the space for years to come Number three fan favorite Microsoft So I'm just kidding when I say fan favorite I work for one of the biggest Microsoft resellers in the Midwest so I'm not coming from a biased opinion I just have a pretty deep knowledge and understanding of Microsoft

Microsoft's business and how they operate So Microsoft is committed to bringing block chain to the enterprise and they're working with customers partners and block chain community to continue advancing enterprise readiness through the cocoa framework So cocoa will be compatible by design with any ledger protocol and can operate in the cloud and on premise So take a look at this screenshot everybody I'm not going to sit here and read this verbatim but I do want you to take a look at this and potentially pause the video and read this for yourselves

I'm going to go straight to the bottom to the last two paragraphs because I think it's really important check these out by providing these capabilities Coco offers a trusted foundation with which existing block chain protocols can be integrated to deliver complete enterprise ready Leger's solutions Opening a broad high skill scenarios across industries and furthering block chains ability to digital transform business We have already begun exploring Koko's potential across a variety of industries including retail supply chain and financial services boom that is huge So by design Coco is going to be open and compatible with any block chain protocol and Microsoft has already begun integrating into the crypto currency called Ethereum So some of you may be

I'm pretty sure most of you are already familiar with Ethereum So Microsoft's intent is to distribute the source code to the development community in early 18 And that's why I'm putting them on my top five block chain stocks to watch for 2018 So let's take a look at Microsoft's one year is thirty seven point three percent The five year is 219 percent

And what I love about Microsoft is they have such a solid dividend yield for being still what I consider somewhat of a growth company It's at one point nine six percent So industry enthusiasm for block chain is growing And while it will still take time for block chain to achieve enterprise scale I think Microsoft is well positioned to adopt it and take over in 2018 Number four Visa Visa has rolled out the first pilot phase of its block chain based business to business payment service

It's called B2B connect So this is very similar to MasterCard Visa plans to use the platform to ease cross-border payments by Fassett to excuse me by facilitating direct payments between institutions So again just like MasterCard they're cutting out the middleman in the industry which the whole entire financial sector relies on at this point So they're already working with US based Commerce Bank South Koreas Shin Han bank the Union Bank of Philippines and the United overseas bank based in Singapore

So Visa's global head of solutions Kevin Failon said that the banks are trialing live bank to bank transactions over the platform which is a really good sign So following this first phase the project Phase II will set the project to move to a commercial launch or commercial phase and is slated to occur in the middle of 2018 which is why visa is on this list you guys The one year for visa has been about forty two point two percent are Aui and the five year has been about 183 For those of you that remember I actually recommended visa as one of my bluechip stocks for 2018 That was in my video call the stocks for beginners in 2018 and I think them getting involved in blocking just helps the argument so that's why I put them on this list as well

Number five Cisco Systems So Cisco is looking for ways to move beyond its hardware and block chain to give Cisco a viable path to that growth Cisco is one of the 200 companies that are part of the enterprise Ethereum alliance So these are governments and companies from all over the world and multiple industries testing out a version of Ethereum block chain So I think that this is pretty cool you guys especially for a company like Cisco who is known to be somewhat conservative in their growth tactics

What makes Ethereum block chain uniquely attractive to businesses is that incorporates smart contracts that help verify facilitate or enforce the negotiation of a contract So you can take a look at this screenshot Cisco is also working to craft its own block chain systems In October the company filed for the trademark of a block chain platform that can identify different connected devices Monitor the activity of those devices and evaluate how trustworthy those devices are when connected to a network

It would also continually and automatically assess new devices when added to the network So in other words Cisco believes it has a game changing block chain to track the Internet of Things Internet of Things is getting huge from smart phones to smart printers to smart refrigerators I think everything in the future is eventually going to become quote unquote smart So this could be a huge play for Cisco Let's take a look at their one year the one year has been about 27 percent and their five year has been about 88 percent

These are really good gains especially for a company that pays a solid and great dividend like Cisco does And I think that with this block chain play there's still some room for growth And those are my top five block chain stocks going into 2018 Now you may be saying what about a hive block chain What about X Y Z Block Chain company

For the most part those are mostly just penny stocks at this point And if you want to take on that risk and invest in those who by all means go ahead The reason I chose these five is because there are five reputable companies that have shown consistent growth that are starting to delve into the block chain technology They're not necessarily betting the whole house or their whole business on it So if you want to take on more risk take on take a look at hive block chain and there's a couple other ones as well

All you have to do is a quick google search So thank you so much for watching If you got any value out of this video whatsoever please hit the subscribe button below Like the video and also share it with your friends and family I would really appreciate it especially being a new channel Thank you so much everybody and have a prosperous day

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