August 28, 2025 a 03:32 pm
CBOE: Dividend Analysis - Cboe Global Markets, Inc.
Cboe Global Markets, Inc., with a market capitalization of approximately $24.7 billion, offers a nuanced dividend profile with a dividend yield of 1.10%. The company has maintained a consistently positive dividend growth trend over the last five years, suggesting a stable and shareholder-friendly dividend policy.
📊 Overview
| Key Metric | Value |
|---|---|
| Sector | Financial Services |
| Dividend yield | 1.10% |
| Current dividend per share | $2.37 |
| Dividend history | 16 years |
| Last cut or suspension | None |
🗣️ Dividend History
The company has a well-established track record of providing dividends, signaling strong financial health and a commitment to returning capital to shareholders. This stability is crucial for income-focused investors who rely on predictable dividend streams.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.98 |
| 2024 | 2.36 |
| 2023 | 2.10 |
| 2022 | 1.96 |
| 2021 | 1.80 |
📈 Dividend Growth
Dividend growth is indicative of both financial health and management's confidence in future earnings. Cboe's consistent growth reflects robust performance and prudent corporate strategies.
| 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
The payout ratio provides insight into the sustainability of dividend payments. Lower payout ratios typically suggest that the dividend is well-covered by earnings and cash flows, offering a margin of safety.
| Key Figure | Ratio |
|---|---|
| EPS-based | 27.65% |
| Free cash flow-based | 13.71% |
The company's EPS payout ratio of 27.65% and FCF payout ratio of 13.71% indicate a conservative approach, ensuring that dividends are well-supported by its earnings and cash flows.
✅ Cashflow & Capital Efficiency
The analysis of cash flow and capital efficiency is crucial for assessing a company's operational performance and its ability to generate profits relative to its capital investments.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.06% | 5.46% | 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 | 94.47% | 95.82% | 90.82% |
The company exhibits strong cashflow generation and efficient capital use, as evidenced by steady free cash flow yields and reasonable CAPEX requirements.
📉 Balance Sheet & Leverage Analysis
Analyzing balance sheet metrics provides insight into financial stability and the company's ability to manage its obligations and growth sustainably.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 37.37% | 40.42% | 54.00% |
| Debt-to-Assets | 20.53% | 21.51% | 26.74% |
| 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 leverage ratios suggest Cboe has been focusing on reducing debt levels in recent years, leading to enhanced financial stability and a lower risk profile.
🔍 Fundamental Strength & Profitability
Evaluating profitability ratios is key to understanding how effectively a company converts operations into profit and revenue into returns.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 17.87% | 19.11% | 6.78% |
| Return on Assets | 9.82% | 10.17% | 3.36% |
| Net Margin | 18.68% | 20.18% | 5.94% |
| EBIT Margin | 27.73% | 29.42% | 12.45% |
| EBITDA Margin | 30.98% | 33.60% | 28.73% |
| Gross Margin | 39.32% | 50.83% | 44.00% |
| R&D to Revenue | 0% | 0% | 0% |
The company displays robust profitability, particularly in its net and EBIT margins, signifying efficient operational management and a strong competitive position.
📈 Price Development
⭐ Dividend Scoring System
| Criteria | Score (1-5) | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🗣️ Rating
Cboe Global Markets, Inc. presents a compelling investment case for dividend seekers, characterized by its stable dividend history, prudent payout ratios, and strong financial metrics. The company's consistent growth and sound capital management suggest a reliable and attractive dividend investment, meriting a strong recommendation for inclusion in income-focused portfolios.