Nasdaq Inc's Dividend Analysis
An In-Depth Look at Nasdaq Inc's Upcoming Dividend and Historical Performance
Nasdaq Inc (NASDAQ:NDAQ) recently announced a dividend of $0.22 per share, payable on 2024-03-28, with the ex-dividend date set for 2024-03-13. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Nasdaq Inc's dividend performance and assess its sustainability.
What Does Nasdaq Inc Do?
-
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
-
How to calculate the intrinsic value of a stock?
Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.
A Glimpse at Nasdaq Inc's Dividend History
Nasdaq Inc has maintained a consistent dividend payment record since 2012. Dividends are currently distributed on a quarterly basis. Nasdaq Inc has increased its dividend each year since 2012. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 12 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Nasdaq Inc's Dividend Yield and Growth
As of today, Nasdaq Inc currently has a 12-month trailing dividend yield of 1.45% and a 12-month forward dividend yield of 1.49%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Nasdaq Inc's annual dividend growth rate was 10.00%. Extended to a five-year horizon, this rate decreased to 8.50% per year. And over the past decade, Nasdaq Inc's annual dividends per share growth rate stands at an impressive 17.10%.
Based on Nasdaq Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Nasdaq Inc stock as of today is approximately 2.18%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Nasdaq Inc's dividend payout ratio is 0.30.