Cboe Global Markets Inc's Dividend Analysis
Unveiling the Dividend Dynamics of Cboe Global Markets Inc
Cboe Global Markets Inc (CBOE) recently announced a dividend of $0.55 per share, payable on 2024-03-15, with the ex-dividend date set for 2024-02-28. 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 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, distributing dividends on a quarterly basis. The company has also increased its dividend each year since 2010, earning it the title of a dividend achiever, which is reserved for companies with at least 14 consecutive years of dividend increases. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Cboe Global Markets Inc's Dividend Yield and Growth
Cboe Global Markets Inc currently has a 12-month trailing dividend yield of 1.06% and a 12-month forward dividend yield of 1.11%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, the company's annual dividend growth rate was 10.40%, which increased to 12.90% per year over a five-year period. Furthermore, the past decade has seen an annual dividends per share growth rate of 12.40%. As of today, the 5-year yield on cost for Cboe Global Markets Inc stock is approximately 1.94%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. Cboe Global Markets Inc's dividend payout ratio is 0.27 as of 2023-12-31, suggesting that the company retains a significant part of its earnings, which bodes well for future growth and financial flexibility. The company's profitability rank, which stands at 9 out of 10, indicates good profitability prospects. This is supported by a consistent record of positive net income over the past decade.
Growth Metrics: The Future Outlook
A company's growth metrics are crucial for the sustainability of dividends. Cboe Global Markets Inc's growth rank of 9 out of 10 suggests a strong growth trajectory. However, the company's revenue per share and 3-year revenue growth rate of 4.30% per year slightly underperforms approximately 55.41% of global competitors. Additionally, the 3-year EPS growth rate of 14.00% per year also underperforms approximately 44.42% of global competitors. Lastly, the 5-year EBITDA growth rate of 10.50% underperforms approximately 51.09% of global competitors.
Concluding Insights on Cboe Global Markets Inc's Dividend Profile
In conclusion, Cboe Global Markets Inc's consistent dividend payments and growth, coupled with a reasonable payout ratio and high profitability, paint a picture of a financially robust company with a commitment to shareholder returns. While growth metrics present a mixed performance relative to global competitors, the company's overall financial health remains strong. Investors seeking to expand their portfolios with dividend-paying stocks should consider Cboe Global Markets Inc's track record and future prospects. Will Cboe Global Markets Inc continue to be a reliable source of dividends for years to come? This is a question value investors may ponder as they examine the company's financials and market position.
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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.
