August 01, 2025 a 07:46 am
CBOE: Dividend Analysis - Cboe Global Markets, Inc.
Cboe Global Markets presents an intriguing dividend profile, characterized by modest yet stable dividend growth over recent years. The company's commitment to maintaining dividend continuity is reflected in its 16 years of uninterrupted payments. Despite a slightly lower dividend yield, the company's strong financial fundamentals and efficient capital management offer confidence in its ability to sustain and potentially grow future dividends.
📊 Overview
The financial health of Cboe Global Markets is apparent in its sector-leading capabilities. With a current dividend per share of 2.37 USD and a dividend yield of approximately 1.10%, the company has exhibited a sustained commitment to its investors, as seen with its uninterrupted dividend history of 16 years and no recent cuts.
| Metric | Value |
|---|---|
| Sector | Financials |
| Dividend yield | 1.10 % |
| Current dividend per share | 2.37 USD |
| Dividend history | 16 years |
| Last cut or suspension | None |
🗣️ Dividend History
The historical analysis reveals a consistent dividend payout trend, which is pivotal for income-focused investors. A stable dividend is often a signal of a company's financial solidness and management's confidence in sustained performance.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.26 |
| 2024 | 2.36 |
| 2023 | 2.10 |
| 2022 | 1.96 |
| 2021 | 1.80 |
📈 Dividend Growth
Consistent growth in dividends is a crucial parameter for evaluating a stock's attractiveness to dividend investors. Over the periods of 3 and 5 years, the dividend growth rates have demonstrated stability, reflecting the company's robust financial health and strategic prowess.
| Time | Growth |
|---|---|
| 3 years | 9.45 % |
| 5 years | 11.99 % |
The average dividend growth is 11.99% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios serve as an essential barometer for assessing dividend sustainability. Cboe Global Markets maintains a conservative payout with an EPS payout ratio of 30.87% and a more restrained FCF payout ratio of 13.96%, ensuring substantial room for future dividend creeps if desired by the board.
| Key figure ratio | Value |
|---|---|
| EPS-based | 30.87 % |
| Free cash flow-based | 13.96 % |
The prudent EPS and FCF payout ratios indicate a well-covered dividend alongside potential for future increases without financial strain.
📈 Cashflow & Capital Efficiency
Evaluating cash flow metrics reveals the company's operational effectiveness and capacity for dividends. High free cash flow yields relative to market conditions signify the company's ability to generate surplus cash, while capital efficiency metrics highlight operational prudence.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.06 % | 5.45 % | 4.43 % |
| Earnings Yield | 3.72 % | 4.03 % | 1.76 % |
| CAPEX to Operating Cash Flow | 5.53 % | 4.18 % | 9.18 % |
| Stock-based Compensation to Revenue | 1.02 % | 1.09 % | 0.78 % |
| Free Cash Flow / Operating Cash Flow Ratio | 94.46 % | 95.82 % | 90.82 % |
Cboe Global Markets showcases strong cash flow efficiency, making it well-positioned to meet its financial obligations and shareholder returns without resorting to excessive leverage.
⚠️ Balance Sheet & Leverage Analysis
Assessing leverage metrics unveils financial health and resilience to economic fluctuations. Low debt ratios paired with comfortable interest coverage demonstrate the company's robust financial safety net, indicating high liquidity and controlled leverage.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 37.37 % | 40.42 % | 54.00 % |
| Debt-to-Assets | 20.53 % | 21.51 % | 26.73 % |
| Debt-to-Capital | 27.20 % | 28.79 % | 35.07 % |
| Net Debt to EBITDA | 0.54 | 0.84 | 1.27 |
| Current Ratio | 1.78 | 1.43 | 1.05 |
| Quick Ratio | 1.78 | 1.43 | 0.69 |
| Financial Leverage | 1.82 | 1.88 | 2.02 |
The balance sheet presents a healthy leverage profile with improving metrics over time, suggesting an optimally leveraged firm.
💪 Fundamental Strength & Profitability
A comprehensive understanding of profitability ratios depicts the company's intrinsic strength and systematic efficiencies. High ROE and ROA ratios corroborate Cboe Global Markets' competency in capitalizing on its equity and assets effectively.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.87 % | 19.12 % | 6.78 % |
| Return on Assets | 9.82 % | 10.17 % | 3.36 % |
| Margins: Net | 18.68 % | 20.18 % | 5.94 % |
| Margins: EBIT | 27.73 % | 29.42 % | 12.45 % |
| Margins: EBITDA | 30.98 % | 33.60 % | 28.73 % |
| Margins: Gross | 39.32 % | 50.83 % | 44.00 % |
| Research & Development to Revenue | 0.00 % | 0.00 % | 0.00 % |
The significant profitability ratios affirm Cboe Global Markets' ability to generate satisfactory returns from its investments, highlighting its resilience and potential for long-term growth.
📉 Price Development
Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3/5 | |
| Dividend Stability | 4/5 | |
| Dividend growth | 3/5 | |
| Payout ratio | 4/5 | |
| Financial stability | 4/5 | |
| Dividend continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 4/5 |
Total Score: 31/40
Rating
The overall dividend strategy of Cboe Global Markets, Inc. is evaluated as robust, maintaining a balance between progressive dividends and financial prudence. With a commendable scoring and comprehensive performance across key financial metrics, the company represents a strong candidate for dividend investors seeking a reliable income stream. However, investors should consider market conditions and potential external economic challenges in their investment strategy.