June 27, 2025 a 03:31 am
ICE: Dividend Analysis - Intercontinental Exchange, Inc.
The dividend profile of Intercontinental Exchange, Inc. demonstrates a commitment to shareholder value with a current dividend yield of 1.06%. With an extended dividend history of 13 years without any recent cuts or suspensions, the company shows resilience and stability in its dividend policy. However, the comparatively modest dividend yield indicates the need for a deeper analysis of its growth prospects and payout sustainability.
📊 Overview
The overview of ICE's dividend metrics reveals insights into its financial stability and strategic priorities. With a sector classification in the Financial Services, a moderate dividend yield, and consistent payment history, ICE shows a commitment to returning value to its investors.
| Metric | Details |
|---|---|
| Sector | Financial Services |
| Dividend yield | 1.06% |
| Current dividend per share | 1.81 USD |
| Dividend history | 13 years |
| Last cut or suspension | None |
📈 Dividend History
Intercontinental Exchange's dividend track record serves as a testament to its operational consistent performance. This historical perspective underscores the strategic significance of consistent returns to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.92 |
| 2024 | 1.80 |
| 2023 | 1.68 |
| 2022 | 1.52 |
| 2021 | 1.32 |
📊 Dividend Growth
Analyzing dividend growth rates offers insight into expected future income and the financial health of a company. ICE's moderate growth in dividends highlights its ongoing commitment to sharing financial success with its investors.
| Time | Growth |
|---|---|
| 3 years | 10.89% |
| 5 years | 10.35% |
The average dividend growth is 10.35% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios are crucial in assessing dividend sustainability. A balanced EPS-based payout ratio ensures dividends are covered and sustainable, while the FCF-based ratio provides further assurances of financial health.
| Key figure | Ratio |
|---|---|
| EPS-based | 37.39% |
| Free cash flow-based | 26.26% |
With a 37.39% EPS-based and 26.26% FCF-based payout ratio, the dividends appear well-covered, indicating strong financial health and prudent dividend policy management.
💰 Cashflow & Capital Efficiency
The analysis of cash flow and capital efficiency is essential in understanding a company’s ability to fund dividends and growth. ICE's metrics demonstrate a strong free cash flow yield and efficient capital allocation strategies.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.92% | 4.21% | 5.36% |
| Earnings Yield | 3.23% | 3.27% | 2.52% |
| CAPEX to Operating Cash Flow | 8.81% | 13.81% | 13.56% |
| Stock-based Compensation to Revenue | 1.96% | 2.60% | 1.61% |
| Free Cash Flow / Operating Cash Flow Ratio | 91.19% | 86.19% | 86.44% |
ICE displays strong cash flow stability and capital efficiency, indicated by robust yield ratios that support both operational and strategic expansions.
🔍 Balance Sheet & Leverage Analysis
Balance sheet analysis is fundamental in understanding a company's debt management and financial flexibility. ICE exhibits prudent financial leverage, promoting long-term sustainability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.75 | 0.89 | 0.81 |
| Debt-to-Assets | 0.15 | 0.17 | 0.09 |
| Debt-to-Capital | 0.43 | 0.47 | 0.45 |
| Net Debt to EBITDA | 3.23 | 4.50 | 3.45 |
| Current Ratio | 1.00 | 1.00 | 1.05 |
| Quick Ratio | 0.99 | 1.00 | 0.02 |
The leverage ratios highlight ICE’s solid financial structure, ensuring adequate coverage of short-term obligations while managing long-term debts effectively.
🌟 Fundamental Strength & Profitability
Strong fundamentals and profitability ratios give investors insight into a company's operational efficiency and competitiveness. ICE continues to deliver value to investors through consistent profit margins and sustainable ROE.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.94% | 9.21% | 6.37% |
| Return on Assets | 1.98% | 1.74% | 0.74% |
| Return on Invested Capital | 6.29% | 5.83% | 4.62% |
| Net Profit Margin | 23.42% | 23.91% | 15.01% |
| EBIT Margin | 38.59% | 37.38% | 25.16% |
| EBITDA Margin | 50.59% | 49.44% | 49.84% |
The profitability ratios indicate a stable operational structure, contributing to ICE’s ability to sustain favorable shareholder returns and market competitiveness.
🎯 Dividend Scoring System
| Criteria | Score | 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
Intercontinental Exchange, Inc. offers a robust dividend profile with a stable payout history, moderate growth, and solid financial standing. With a commendable score of 33 out of 40, ICE is a strong candidate for conservative investors seeking stability and moderate growth in their dividend income portfolios. Its steady financial metrics underpin a well-rounded investment case, despite the lower yield compared to more aggressive dividend stocks.