Late last year, Macquarie Group Ltd. (ASX: MQG) came up with the inspired idea of divesting its shares in Sydney Airport (ASX: SYD), of which it has been a loyal, long-term shareholder (Sydney Airport was formerly Macquarie Airports). Luckily its shareholders were on board and Macquarie has now completed its distribution of Sydney Airport shares, simultaneously removing a holding that has run out of steam from its asset book whilst conserving most of the capital that would be required to effect a buyback.
Now that the distribution is largely complete and Macquarie continues business as usual (incidentally on track for another increased profit this year), what's next for Macquarie?
From the outside the company looks lean and ready to rumble, yet there is nary a whisper of future plans, acquisitions, or expansions in the annual and interim reports. It manages its business conservatively, not aggressively, which is why it has a record streak of positive income results over 40 years long.
Fellow Motley Fool contributor Tim McArthur also believes Macquarie Group is a solid bet and fairly priced with its future in mind, even though it has already risen 39.6% this year. With a dividend of 4.2% at today's prices that is forecast to increase in both this financial year and next, it is hard to imagine a more secure share to invest in.
Foolish takeaway
Macquarie is a rock-solid blue-chip stock, well deserving of its place in the ASX 20 and most institutional investors' portfolios. Although Macquarie is trading at close to five-year highs, it is still reasonably priced and investors may be able to snap up a bargain as a result of recent market volatility dropping the value by over 2.5% so far this week.
