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Cboe Global (CBOE) Raises Dividend, Ups Share Buyback Capacity
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Cboe Global Markets’ (CBOE - Free Report) board of directors has approved a 15% hike in its quarterly dividend to return more profits to stockholders. The payout currently stands at 63 cents per share compared with the previous payout of 55 cents. The latest hike marks the 14th straight year of dividend increase.
Based on the stock’s Aug 16 closing price of $202.94, the new dividend will yield 1.03%. This makes Cboe Global an attractive pick for yield-seeking investors. Shareholders of record on Aug 30 will receive the increased dividend on Sep 13. CBOE’s dividend witnessed an eight-year (2017-2024) CAGR of 12.2%.
Cboe Global, one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading, remains committed to returning excess cash to shareholders through share repurchases. It had a leftover capacity of roughly $179.8 million under its existing share repurchase authorizations as of Jul 31, 2024. Simultaneous with the dividend hike announcement, the board sanctioned the securities and exchanges company to repurchase up to an additional $500 million of its outstanding common stock. Since the inception of the buyback program in 2011 through Jun 30, 2024, the company has repurchased shares for $1.6 billion.
A sound cash balance and strong cash-generating abilities substantiate the solid financial position of CBOE. CBOE Global exited the second quarter with cash and cash equivalents of $614.6 million, which increased 13% from the 2023-end level. In the first half of 2024, the company returned 65% of adjusted earnings to shareholders through a combination of dividends and share repurchases.
Cash flow from operations surged more than four-fold to $2.4 billion in the first half of 2024. CBOE remains well positioned to invest in business, support dividend and opportunistically repurchase shares, given continued strong free cash flow generation. Strong liquidity not only mitigates balance sheet risks but also paves the way for accelerated capital deployment.
Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 22.5% in the trailing 12 months, up 50 basis points year over year. The figure was better than the industry average of 13.2%.
Shares of this Zacks Rank #3 (Hold) securities and exchanges company have gained 34.8% in the past year compared with the industry’s growth of 16.7%. Expanding product lines across asset classes, broadening geographic reach, diversifying the business mix with recurring revenues and leveraging technology should help shares retain momentum.
NMI Holdings’ earnings surpassed estimates in each of the last four quarters, the average surprise being 10.15%. Shares of NMIH have jumped 36.3% in the past year. The Zacks Consensus Estimate for NMIH’s 2024 and 2025 earnings implies year-over-year growth of 15.6% and 5.5%, respectively.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average surprise being 11.43%. Shares of WRB have skyrocketed 40.9% in the past year. The Zacks Consensus Estimate for WRB’s 2024 and 2025 earnings implies year-over-year growth of 22.8% and 5.6%, respectively.
Arch Capital’s earnings surpassed estimates in each of the last four quarters, the average surprise being 28.93%. Shares of ACGL have jumped 36.8% in the past year. The Zacks Consensus Estimate for ACGL’s 2024 and 2025 earnings implies year-over-year growth of 6.5% and 2.5%, respectively.
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Cboe Global (CBOE) Raises Dividend, Ups Share Buyback Capacity
Cboe Global Markets’ (CBOE - Free Report) board of directors has approved a 15% hike in its quarterly dividend to return more profits to stockholders. The payout currently stands at 63 cents per share compared with the previous payout of 55 cents. The latest hike marks the 14th straight year of dividend increase.
Based on the stock’s Aug 16 closing price of $202.94, the new dividend will yield 1.03%. This makes Cboe Global an attractive pick for yield-seeking investors. Shareholders of record on Aug 30 will receive the increased dividend on Sep 13. CBOE’s dividend witnessed an eight-year (2017-2024) CAGR of 12.2%.
Cboe Global, one of the largest stock exchange operators by volume in the United States and a leading market globally for ETP trading, remains committed to returning excess cash to shareholders through share repurchases. It had a leftover capacity of roughly $179.8 million under its existing share repurchase authorizations as of Jul 31, 2024. Simultaneous with the dividend hike announcement, the board sanctioned the securities and exchanges company to repurchase up to an additional $500 million of its outstanding common stock. Since the inception of the buyback program in 2011 through Jun 30, 2024, the company has repurchased shares for $1.6 billion.
A sound cash balance and strong cash-generating abilities substantiate the solid financial position of CBOE. CBOE Global exited the second quarter with cash and cash equivalents of $614.6 million, which increased 13% from the 2023-end level. In the first half of 2024, the company returned 65% of adjusted earnings to shareholders through a combination of dividends and share repurchases.
Cash flow from operations surged more than four-fold to $2.4 billion in the first half of 2024. CBOE remains well positioned to invest in business, support dividend and opportunistically repurchase shares, given continued strong free cash flow generation. Strong liquidity not only mitigates balance sheet risks but also paves the way for accelerated capital deployment.
Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 22.5% in the trailing 12 months, up 50 basis points year over year. The figure was better than the industry average of 13.2%.
Shares of this Zacks Rank #3 (Hold) securities and exchanges company have gained 34.8% in the past year compared with the industry’s growth of 16.7%. Expanding product lines across asset classes, broadening geographic reach, diversifying the business mix with recurring revenues and leveraging technology should help shares retain momentum.
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Stocks to Consider
Some better-ranked stocks from the finance sector include NMI Holdings Inc (NMIH - Free Report) , W.R. Berkley Corporation (WRB - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NMI Holdings’ earnings surpassed estimates in each of the last four quarters, the average surprise being 10.15%. Shares of NMIH have jumped 36.3% in the past year. The Zacks Consensus Estimate for NMIH’s 2024 and 2025 earnings implies year-over-year growth of 15.6% and 5.5%, respectively.
W.R. Berkley’s earnings surpassed estimates in each of the last four quarters, the average surprise being 11.43%. Shares of WRB have skyrocketed 40.9% in the past year. The Zacks Consensus Estimate for WRB’s 2024 and 2025 earnings implies year-over-year growth of 22.8% and 5.6%, respectively.
Arch Capital’s earnings surpassed estimates in each of the last four quarters, the average surprise being 28.93%. Shares of ACGL have jumped 36.8% in the past year. The Zacks Consensus Estimate for ACGL’s 2024 and 2025 earnings implies year-over-year growth of 6.5% and 2.5%, respectively.