Cboe Global (CBOE) Raises Dividend, Ups Share Buyback Capacity

Core Viewpoint - Cboe Global Markets has approved a 15% increase in its quarterly dividend, marking the 14th consecutive year of dividend growth, aimed at returning more profits to shareholders [1][2]. Dividend and Shareholder Returns - The new dividend payout is 63 cents per share, up from 55 cents, resulting in a yield of 1.03% based on the stock's closing price of $202.94 on August 16 [2]. - Shareholders of record on August 30 will receive the increased dividend on September 13 [2]. - Cboe has a compound annual growth rate (CAGR) of 12.2% for dividends over the past eight years (2017-2024) [2]. Share Repurchase Program - Cboe Global has approximately $179.8 million remaining under its existing share repurchase authorizations as of July 31, 2024, and has been authorized to repurchase an additional $500 million of its common stock [3]. - Since the buyback program's inception in 2011 through June 30, 2024, the company has repurchased shares totaling $1.6 billion [3]. Financial Position and Cash Flow - Cboe exited the second quarter with cash and cash equivalents of $614.6 million, a 13% increase from the end of 2023 [4]. - In the first half of 2024, the company returned 65% of adjusted earnings to shareholders through dividends and share repurchases [4]. - Cash flow from operations surged to $2.4 billion in the first half of 2024, indicating strong free cash flow generation [5]. Profitability and Performance Metrics - The return on equity (ROE) was 22.5% in the trailing 12 months, an increase of 50 basis points year over year, outperforming the industry average of 13.2% [6]. - Cboe's shares have gained 34.8% over the past year, compared to the industry's growth of 16.7% [7]. Growth Strategy - The company is focused on expanding product lines across asset classes, broadening geographic reach, diversifying its business mix with recurring revenues, and leveraging technology to maintain share momentum [7].