CME Group (CME 1.62%) is keeping the taps open on its dividend. As per its habit, the derivatives exchange operator's board of directors has declared a new quarterly dividend. This will be $0.85 per share, which matches each of the company's three previous disbursements. Prior to that, CME Group had been paying $0.75 per share.
The company's new dividend will be dispensed on Sept. 25 to stockholders of record as of Sept. 10. At the most recent closing stock price, it yields just over 2%.
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CME Group is a steady payer of dividends, having handed one out every quarter for many years. Since 2011, it has also typically raised its distribution at the beginning of every year. In addition to that regular payout, since 2012 the company has also issued a "variable dividend," which tends to be declared in late December.
The level of the payout depends, in CME Group's words, "on operating results, potential investment activity, and other forms of capital return including regular dividends and share buybacks during the prior year." These annual distributions have ranged from $0.60 to $3.50 per share.
As with many other companies in the finance sector, CME Group has had an up-and-down 2020. In its second quarter, reported at the end of July, a notable decline in volume for interest rate products contributed to a 7% year-over-year fall in revenue for the company. Non-GAAP (adjusted) net income, meanwhile, slumped by nearly 8% across that stretch of time.
On Friday, CME Group's shares closed the week on a high note. They were up by 1.9% on the day, convincingly beating the gains of the wider stock market.
