CBOE Announces Special Dividend - Analyst Blog
17 Dicembre 2012 - 4:10PM
Zacks
Earlier this week, the board of directors of CBOE
Holdings Inc. (CBOE) announced a special cash dividend of
75 cents per share payable on Dec 28, 2012 to shareholders of
record as of Dec 21, 2012. This implies a dividend yield of 2.5%,
based on the company’s closing share price of $30.00 as of Dec 13,
2012.
CBOE expects a cash outlay of about $66.6 million for the
dividend payment, considering the number of shares outstanding at
present. The company will use its cash-in-hand to pay the
dividend.
This will substantially reduce CBOE’s cash and cash equivalents,
which stood at $160.3 million as of Sep 30, 2012. However, the
company generated operating cash flow of $140.87 million during the
first nine months of 2012, which is sufficient to cover the
expenditure for the special dividend.
The strong cash flows generated by CBOE along with the absence
of debt have resulted in a sturdy balance sheet and abundant free
cash. Consequently, the company strives to regularly return the
excess capital to shareholders through dividends and share
repurchases, apart from investing in business.
In addition to this special dividend, CBOE declared a regular
quarterly dividend on Oct 30, 2012. This cash dividend of 15 cents
per share (for the fourth quarter of 2012) will be paid on Dec 21,
2012 to shareholders of record as of Nov 30, 2012.
Apart from dividend payments, CBOE used its excess capital for
share buybacks. The company repurchased 1.87 million shares at an
average price of $26.58 per share up to Nov 1 this year. This
involved a cash outlay of $49.7 million. As of Sep 30, 2012,
outstanding balance in the company’s share repurchase program stood
at $103.3 million.
Other exchanges, such as Nasdaq OMX Group Inc.
(NDAQ) and NYSE Euronext Inc. (NYX) also regularly
deploy capital via share repurchases and dividend payments.
Currently, CBOE carries a Zacks #3 Rank (Hold). We maintain a
long-term ‘Neutral’ recommendation on the stock.
CBOE HOLDINGS (CBOE): Free Stock Analysis Report
NASDAQ OMX GRP (NDAQ): Free Stock Analysis Report
NYSE EURONEXT (NYX): Free Stock Analysis Report
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