A Sneak Peek at Citigroup, the Top Dividend Grower
The top ten S&P 500 dividend growers
In this series, we’ll take a look at the ten US S&P 500 (SPX-INDEX) (SPY) companies with the highest dividend growth rate in the last year.
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Citigroup’s revenue and earnings in 2015 and 2016
Citigroup’s (C) revenue fell 1% and 8% in 2015 and 2016, respectively. Its Global Consumer Banking segment’s revenue fell 5% and 2% in 2015 and 2016. The fall was most pronounced in Latin America, followed by Asia, and growth was almost flat in North America. The Institutional Clients Group segment’s revenue rose 2% in 2015, compared with flat growth in 2016. Whereas the segment’s Latin American revenue fell in 2015, growth remained almost flat for every region in 2016. The Citi Holdings segment’s revenue fell 4% and 57% in 2015 and 2016, respectively, and the Corporate/Other segment’s revenue rose 200% in 2015 before falling 57% in 2016.
The bank’s net interest revenue fell 3% in both 2015 and 2016, offset by a fall in interest expenses in 2015 and a rise in interest expenses in 2016. Meanwhile, non-interest revenue rose 2% in 2015 before falling 17% in 2016. Operating expenses stood at 21% in 2015, compared with 5% in 2016. As a result, the bank’s operating income rose 69% in 2015 before falling 13% in 2016. Its EPS (earnings per share) rose 145% in 2015 before falling 13% in 2016. Share buybacks have enhanced its EPS.
The Fidelity Dividend ETF for Rising Rates (FDRR) is a dividend fund with exposure to Citigroup. It has a dividend yield of 2.7% and a PE (price-to-earnings) ratio of 17x. The First Trust NASDAQ Rising Dividend Achievers ETF (RDVY), which also has exposure to Citigroup, has a 1.2% dividend yield and a PE ratio of 15.7x. In the next part, we’ll look at Citigroup’s’s 2017 performance and compare it with broad market indexes’ (DJIA-INDEX) (DIA) (COMP-INDEX) (ONEQ).