CME Group declares annual variable dividend of $2.50 per share
Derivatives marketplace operator CME Group Inc (NASDAQ:CME) today declared its annual variable dividend, amounting to $2.50 per share. The dividend is payable January 13, 2021, to shareholders of record on December 28, 2020.
The annual variable dividend of $2.50 per share to be paid in January 2021 totals approximately $900 million.
Including today’s announced variable dividend and the previously announced fourth-quarter 2020 dividend of $0.85 per share to be paid in December, the total dividend yield for dividends announced during 2020 is 3.3% based on the average closing stock price in 2020 to date. The company will have paid a total of more than $15 billion in quarterly and variable dividends since adopting the annual variable dividend structure in the beginning of 2012.
When CME Group adopted its annual variable dividend structure in February 2012, the intention was to determine the excess cash available at the end of each year, with the level to increase or decrease from year to year based on operating results, potential investment activity and other forms of capital return.
Let’s recall that the company paid dividends of $304 million during the third quarter of 2020.
CME Group reported revenue of $1.1 billion for the third quarter of 2020, down from $1.3 billion registered in the corresponding period a year earlier. Operating income was $525 million in the third quarter of 2020, compared with $685.2 million a year earlier. Net income was $412 million, down from $636 million in the third quarter of 2019.
Diluted earnings per share for the third quarter of 2020 were $1.15.