CME Returned $1.6 Billion in 2015: What About Dividends?
CME Group (CME) has returned more than $5.6 billion to shareholders in the form of dividends since the variable dividend policy in 2012. In 2015, CME declared dividends of $1.6 billion.
CME Group (CME) recorded average daily volumes of 18.2 million in January 2016. This compares to average daily volumes of 13.2 million in 4Q15.
CME Group’s (CME) operations outside the United States are expanding at a good pace. Volumes are impressive as CME leverages investments in global headcount, partnerships, and product development.
In January 2016, CME Group (CME) reported that volumes for foreign exchange rose to 970,000 on increased volatility.
CME Group (CME) purchased the Chicago Board of Trade in 2007 to expand its rates business. Since then, near-zero interest rates have led to lower returns for the company.
CME Group (CME) reported a 13% rise in volumes of energy trades for 4Q15 to an average 2.0 million contracts per day compared to the prior year’s quarter.
CME Group (CME) reported its 4Q15 earnings on February 5, 2016. It beat Wall Street analysts’ adjusted EPS estimates of $0.90 with posted EPS of $0.92.
Intercontinental Exchange (ICE) returned $991 million to shareholders in 2015. This was comprised of approximately $331 million in dividends and $660 million in share repurchases.
Intercontinental Exchange (ICE) continues to penetrate global energy markets, especially in the United States and Europe. It reported a 7% year-over-year revenue increase in energy products.
Intercontinental Exchange (ICE) has completed the acquisition of Interactive Data for $5.2 billion. It has diversified into nine asset classes to help it grow.
ICE expects to maintain $500 million in operational cash and a leverage ratio of 2.0x. It intends to use remaining cash flows for business investments and to return capital to shareholders.
Intercontinental Exchange (ICE) reported 35% growth in its data services segment in 4Q15. It increased to $257 million, forming 21% of the company’s total revenues.
Intercontinental Exchange (ICE) reported a 4% decline in its transaction and clearing revenue. It totaled $811 million in 4Q15 compared to $844 million in 4Q14.
Intercontinental Exchange (ICE) reported its 4Q15 earnings on February 4, 2016. It beat Wall Street analysts’ adjusted EPS estimates of $3.01 with posted EPS of $3.27.
CME stock has been historically valued at a premium compared to its peers. The company commands a premium, mainly due to higher volumes in interest rates, foreign exchange, and energy trades.
CME (CME) recorded average daily volumes of 13.3 million in November and December 2015. This compares to average daily volumes of 14.4 million in the previous quarter.
CME’s volumes from outside the United States continue to be impressive as the company leverages its investments in global headcount, partnerships, and product development.
CME Group (CME) reported foreign exchange volumes of 855,000 in the third quarter of 2015, down from 797,000 million in the prior year’s quarter.
As the Federal Reserve gears up for further interest rate hikes in 2016, CME can see a substantial increase in rates trading.
CME’s WTI options have increased in volume and operating income. The average rate per contract for energy trades declined 6% year-over-year, reflecting higher shifts on electronic trades.