Futures exchange operator CME Group Inc. (
) on Thursday posted adjusted fourth quarter earnings that missed
expectations, but also announced a big change to its dividend
The Chicago-based company reported fourth quarter net income of
$745.9 million, or $11.25 per share, compared with $196.2 million,
or $2.93 per share, in the year-ago period. Excluding a big
one-time tax gain, adjusted profit was $3.55 per share.
On average, Wall Street analysts expected a higher profit of
$3.64 per share.
In a separate announcement, CME's board of directors said the
company would now look to pay out 50% of the previous year's cash
earnings. It had previously paid out 35% of its earnings in
dividends. As a result, CME boosted its first quarter dividend
payout by 59% to $2.23 per share.A
Additionally, the company will pay out a variable special
dividend each year. For 2012, this one-time payout will be $3 per
CME Group shares rose $2.92, or +1.2%, in premarket trading
The Bottom Line
Shares of CME Group (
) will now have a 3.63% dividend yield, based on the higher
dividend payout and last night's closing stock price of $245.48.
The stock has technical support in the $226-$230 price area. If the
shares can firm up, we see overhead resistance around the $253-$260
CME Group Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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