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How ASX Ltd (ASX:ASX) just lifted revenue, profit, and dividends once again

ASX Ltd (ASX: ASX) today announced that its full year FY 2018 revenue was up by $58 million (almost 8%) mainly due to new listings and increased derivatives and OTC trading.

Underlying profit was up 7% to $465 million while statutory profit was up 2.5% to $445 million. Total capital raised on the ASX during the year was up 46% to $81.7 billion led by IPOs in companies such as Netwealth Group Ltd (ASX: NWL).

Total FY 2018 dividends were up 7.2% to 216.3 cents per share, an effective 3.2% yield at a 90% pay out ratio.

The ASX also provided an update on the Clearing House Electronic Subregister System (CHESS) replacement project with the new ASX CHESS DLT system expected to go live in late 2020 – early 2021.

What did management have to say?

ASX Managing Director and CEO Mr Dominic Stevens highlighted that the business was benefiting from its non-cyclical nature and its ability to generate profit even in periods of low volatility.

He said, “This is a very pleasing financial result reflecting ASX’s disciplined balance between investing in the operation and integrity of our core businesses – our Stronger Foundations initiative – and pursuing growth initiatives. This result highlights the versatility of ASX’s diversified business model to deliver attractive earnings growth across different business cycles”.

Strong volatility ahead

Looking ahead, the ASX Ltd is expecting trading revenues to increase due to market volatility as a result of rate changes in the US and geopolitical instability.

Demerger plans such as the Commonwealth Bank of Australia’s (ASX: CBA) spin off of its wealth division and the Wesfarmers Ltd (ASX: WES) spin off of Coles are also expected to head up a strong pipeline of expected listings.

Overall, the ASX has been a steady performer with a strong moat. If you are looking for more stable and profitable businesses such as the ASX,  you won’t want to miss these 3 ASX blue chip stocks.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

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Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can find Kevin on Twitter @KevinGandiya.

The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia owns shares of ASX Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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