CME Group (CME) Declares $1.10 Dividend

CME Group said on February 2, 2023 that its board of directors declared a regular quarterly dividend of $1.10 per share ($4.40 annualized). Shareholders of record as of March 9, 2023 will receive the payment on March 27, 2023. Previously, the company paid $1.00 per share.

At the current share price of $176.55 / share, the stock's dividend yield is 2.49%. Looking back five years and taking a sample every week, the average dividend yield has been 3.17%, the lowest has been 2.19%, and the highest has been 4.98%. The standard deviation of yields is 0.58 (n=236).

The current dividend yield is 1.15 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 1.14. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.55%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 16.34% Upside

As of February 5, 2023, the average one-year price target for CME Group is $205.39. The forecasts range from a low of $160.59 to a high of $262.50. The average price target represents an increase of 16.34% from its latest reported closing price of $176.55.

The projected annual revenue for CME Group is $5,251MM, an increase of 6.12%. The projected annual EPS is $8.43, an increase of 14.82%.

Fund Sentiment

There are 2011 funds or institutions reporting positions in CME Group. This is an increase of 4 owner(s) or 0.20%.

Average portfolio weight of all funds dedicated to US:CME is 0.5335%, a decrease of 5.2960%. Total shares owned by institutions decreased in the last three months by 0.75% to 387,354K shares.

What are large shareholders doing?

Capital World Investors holds 31,226,689 shares representing 8.68% ownership of the company. In it's prior filing, the firm reported owning 33,077,028 shares, representing a decrease of 5.93%. The firm decreased its portfolio allocation in CME by 13.67% over the last quarter.

Capital International Investors holds 14,751,469 shares representing 4.10% ownership of the company. In it's prior filing, the firm reported owning 14,754,229 shares, representing a decrease of 0.02%. The firm decreased its portfolio allocation in CME by 7.22% over the last quarter.

AWSHX - WASHINGTON MUTUAL INVESTORS FUND holds 11,741,391 shares representing 3.26% ownership of the company. In it's prior filing, the firm reported owning 13,996,468 shares, representing a decrease of 19.21%. The firm decreased its portfolio allocation in CME by 25.03% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 10,727,940 shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 10,585,700 shares, representing an increase of 1.33%. The firm decreased its portfolio allocation in CME by 8.59% over the last quarter.

Jpmorgan Chase & holds 8,864,338 shares representing 2.46% ownership of the company. In it's prior filing, the firm reported owning 6,627,193 shares, representing an increase of 25.24%. The firm increased its portfolio allocation in CME by 19.31% over the last quarter.

CME Group Background Information
(This description is provided by the company.)

As the world's leading and most diverse derivatives marketplace, CME Group enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data - empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equityindexes, foreign exchange, energy, agricultural products and metals.The company offers futures and options on futures trading through the CMEGlobex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

This story originally appeared on Fintel.