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Fidelity National (FIS) Hikes 9% Dividend: Worth a Look?

Zacks Equity Research

Last week, Fidelity National Information Services Inc. FIS hiked its quarterly common stock dividend by 9% from the prior-quarter payout to 35 cents per share. The new dividend will be paid on Mar 29, to shareholders of record as of Mar 15, 2019. Following the dividend news, shares of the company rallied 2.6% to close at $107.20.

Since March 2012, the company has raised its dividend seven times. Its dividend was last hiked in March 2018 by 10.3% to 32 cents per share. This reflects the company’s commitment to return value to shareholders with its strong cash-generation capabilities.

Such capital-deployment activities are part of Fidelity National’s long-term strategy to boost shareholder value. It operates as a financial services technology company in the United States and globally, while sustaining financial stability and flexibility.

Investors interested in this Zacks Rank #3 (Hold) stock can have a look at the company’s fundamentals and growth opportunities. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Growth: Fidelity National witnessed earnings growth of 13% in the last three to five years. This earnings momentum is likely to continue in the near term as indicated by the company’s projected earnings per share (EPS) growth rate (F1/F0) of 10.3%. Further, the company recorded average positive earnings surprise of 2.78% in the last four quarters.

Revenue Strength: Fidelity National’s revenues witnessed a CAGR of 10.8% over the last five years (2014-2018). High recurring revenues from processing and maintenance and several ongoing initiatives, including digital strategy, are expected to further drive revenue growth.

Share Price Movement: Fidelity National’s shares have gained 3.1%, in the past three months, compared with 2.5% growth recorded by the industry.


 

Some other finance stocks which raised their dividends during the current quarter include Northern Trust Corporation NTRS, Washington Federal, Inc. WAFD and Wintrust Financial Corporation WTFC. Northern Trust raised its quarterly dividend by 9%, while Wintrust Financial increased by 31.6%. Also, Washington Federal has announced an 11.1% hike in its common stock dividend.

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Wintrust Financial Corporation (WTFC) : Free Stock Analysis Report
 
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