Cboe Global Markets Inc's Dividend Analysis
Assessing the Sustainability of Cboe Global Markets Inc's Dividend Payments
Cboe Global Markets Inc (CBOE) recently announced a dividend of $0.55 per share, payable on 2023-12-15, with the ex-dividend date set for 2023-11-29. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Cboe Global Markets Inc's dividend performance and assess its sustainability.
What Does Cboe Global Markets Inc Do?
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Cboe Global Markets Inc is a provider of market infrastructure and tradable products, delivering cutting-edge trading, clearing, and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, and to providing leading products, technology, and data solutions that enable participants to define a sustainable financial future. Cboe Global Markets Inc offers trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets, across North America, Europe, and Asia Pacific.
A Glimpse at Cboe Global Markets Inc's Dividend History
Cboe Global Markets Inc has maintained a consistent dividend payment record since 2010. Dividends are currently distributed on a quarterly basis. Cboe Global Markets Inc has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 13 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cboe Global Markets Inc's Dividend Yield and Growth
As of today, Cboe Global Markets Inc currently has a 12-month trailing dividend yield of 1.14% and a 12-month forward dividend yield of 1.22%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Cboe Global Markets Inc's annual dividend growth rate was 13.50%. Extended to a five-year horizon, this rate increased to 14.20% per year. And over the past decade, Cboe Global Markets Inc's annual dividends per share growth rate stands at an impressive 13.10%.
Based on Cboe Global Markets Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Cboe Global Markets Inc stock as of today is approximately 2.21%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, Cboe Global Markets Inc's dividend payout ratio is 0.31.
Cboe Global Markets Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Cboe Global Markets Inc's profitability 10 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Cboe Global Markets Inc's growth rank of 10 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Cboe Global Markets Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Cboe Global Markets Inc's revenue has increased by approximately 18.40% per year on average, a rate that outperforms approximately 70.75% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Cboe Global Markets Inc's earnings increased by approximately 13.60% per year on average, a rate that outperforms approximately 53.59% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 12.80%, which outperforms approximately 53.64% of global competitors.
Next Steps
In conclusion, Cboe Global Markets Inc's dividend payments, demonstrated by a consistent track record of growth, along with a prudent payout ratio, indicate a sustainable dividend policy. The company's strong profitability and growth metrics provide further confidence in its ability to maintain and potentially increase its dividend in the future. While past performance is not necessarily indicative of future results, the data presented suggests that Cboe Global Markets Inc stands as a compelling choice for value investors with an eye for dividend income. Will Cboe Global Markets Inc continue to reward its shareholders with growing dividends? Only time will tell, but the signs are promising.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
