July 18, 2025 a 02:46 am
CME: Dividend Analysis - CME Group Inc.
CME Group Inc. presents a comprehensive dividend profile, making it an attractive consideration for income-focused investors. With a consistent dividend history and commendable yield, CME stands out in the financial industry. The company's stable payout ratios and growth prospects further reinforce its investment appeal.
📊 Overview
The financial realm recognizes CME Group Inc. for its robust dividend qualities and industry-standing. The sector-wise allocation and dividend specifics for this corporation appear below:
| Key Metric | Details |
|---|---|
| Sector | Financial Services |
| Dividend Yield | 3.95% |
| Current Dividend Per Share | 9.97 USD |
| Dividend History | 23 years |
| Last Cut or Suspension | None |
📈 Dividend History
CME Group Inc. boasts an impressive dividend history, underscoring its commitment to returning value to shareholders. Below is the visual representation of this history with recent payments detailed.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.50 |
| 2024 | 10.40 |
| 2023 | 9.65 |
| 2022 | 8.50 |
| 2021 | 6.85 |
📈 Dividend Growth
Understanding the growth nature of dividends is crucial for assessing long-term investment potential. CME's dividends have grown consistently over the short and long term.
| Time Period | Growth |
|---|---|
| 3 years | 14.93% |
| 5 years | 13.59% |
The average dividend growth is 13.59% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The company's payout ratios offer insights into the sustainability of its dividend program, ensuring it aligns with profit limits.
| Key Figure | Ratio |
|---|---|
| EPS-based Payout Ratio | 98.89% |
| Free Cash Flow-based Payout Ratio | 93.58% |
The high EPS-based payout ratio of 98.89% suggests potential future constraints, although a strong free cash flow payout of 93.58% may provide some assurance.
🗣️ Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency dimensions is vital for thorough financial analysis, especially for assessing payout capacities.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.31% | 4.47% | 4.92% |
| Earnings Yield | 4.22% | 4.27% | 4.46% |
| CAPEX to Operating Cash Flow | - | 2.21% | 2.93% |
| Stock-based Compensation to Revenue | 1.46% | 1.49% | 1.68% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.45% | 97.79% | 97.06% |
The cash flow figures suggest consistent operational efficiency, with modest CAPEX and high free cash flow ratios ensuring dividends remain covered.
📉 Balance Sheet & Leverage Analysis
Balance sheet scrutiny is essential for determining liquidity and leverage levels, evaluating both short and long-term financial health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.13 | 0.15 | 0.13 |
| Debt-to-Assets | 0.02 | 0.03 | 0.02 |
| Debt-to-Capital | 0.11 | 0.13 | 0.11 |
| Net Debt to EBITDA | 0.12 | 0.26 | 0.21 |
| Current Ratio | 1.02 | 1.02 | 1.01 |
| Quick Ratio | 1.01 | 1.02 | 0.03 |
| Financial Leverage | 5.19 | 4.85 | 6.48 |
CME Group Inc. maintains a solid financial footing with low leverage ratios. Quick ratios and current ratios support its long-term strategy.
📊 Fundamental Strength & Profitability
Fundamental strength underscores operational profitability, enhancing shareholder value through superior financial performance.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.31% | 12.07% | 10.01% |
| Return on Assets | 2.57% | 2.49% | 1.54% |
| Margins - Net | 57.52% | 57.83% | 53.61% |
| Margins - EBIT | 76.71% | 77.31% | 72.78% |
| Margins - EBITDA | 75.24% | 67.90% | 67.05% |
| Margins - Gross | 86.13% | 85.15% | 84.99% |
| R&D to Revenue | 2.08% | 3.92% | 3.76% |
Profitability remains strong with excellent returns on equity and respectable margins across the board, signifying sustained operational efficiency.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Description | Score |
|---|---|---|
| Dividend Yield | Attractive current yield | 4/5 |
| Dividend Stability | Consistent payouts | 5/5 |
| Dividend Growth | Moderate, reliable growth | 3/5 |
| Payout Ratio | High but stable | 3/5 |
| Financial Stability | Sound financial practices | 4/5 |
| Dividend Continuity | Stable long-term payouts | 5/5 |
| Cashflow Coverage | Strong cash flow metrics | 4/5 |
| Balance Sheet Quality | Robust financial health | 4/5 |
Overall Score: 32/40
🗣️ Rating
CME Group Inc. is a robust choice for investors seeking reliably consistent dividends combined with sound financial metrics. With stable payout ratios and promising growth avenues, CME's dividend proposition is attractive. Recommend considering CME for long-term stable income portfolios.