Cboe Global Strengthens Shareholder Returns With Dividend Hike

Cboe Global Markets’ CBOE board of directors has approved a 19% hike in its quarterly dividend to return more profits to stockholders. The payout currently stands at 86 cents per share compared with the previous payout of 72 cents. The latest hike marks the 16th straight year of dividend increases. 

Based on the stock’s Aug. 13 closing price of $293.08, the new dividend will yield 0.9%. This makes Cboe Global an attractive pick for yield-seeking investors. Shareholders of record as of Aug. 31, 2026, will receive the increased dividend on Sept. 15, 2026. CBOE’s dividend witnessed a seven-year (2020-2026) CAGR of 13.2%.

Financial Strength and Capital Management

CBOE maintains a shareholder-friendly capital allocation strategy, balancing investments in organic growth with acquisitions, dividends and share repurchases. The company’s strong cash-generation capabilities provide financial flexibility to reinvest in technology, expand its product offerings and pursue strategic opportunities while returning capital to shareholders. This disciplined approach can support long-term earnings growth and enhance shareholder value.

Cboe Global continues to maintain significant balance sheet flexibility, with adjusted cash of $2.3 billion, which increased 2.7% from the 2025-end level, and a leverage ratio of 0.7 times.  Simultaneously with the dividend hike announcement, the board authorized the company to repurchase shares of its outstanding common stock. Since the inception of the buyback program in 2011 through June 30, 2026, the company has repurchased shares for $1.8 billion. As of June 30, 2026, the company had $536.8 million of availability remaining under its existing share repurchase authorizations. 

Cboe Global, one of the largest stock exchange operators by trading volume in the United States and a leading global market for ETP trading, returned a total of $108 million to shareholders in the second quarter of 2026. Cash flow from operations surged 16.8% year over year in the first half of 2026. 

Return on equity, a profitability measure of how efficiently a company utilizes its shareholders' money, was 25.9%, better than the industry average of 16.2%.

Zacks Rank and Price Performance

Shares of this Zacks Rank #2 (Buy) securities and exchanges company have gained 18.3% in the past year against the industry’s decline of 15.4%. Expanding product lines across asset classes, broadening geographic reach, diversifying the business mix with recurring revenues, and leveraging technology should help shares retain momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Other Stocks to Consider

Some other top-ranked stocks from the finance sector include Ameriprise Financial, Inc. AMP, Nasdaq, Inc. NDAQ and CNO Financial Group, Inc. CNO. While Ameriprise Financial sports a Zacks Rank #1, Nasdaq and CNO Financial carry a Zacks Rank #2 each at present. 

Ameriprise Financial’s earnings surpassed estimates in each of the last four quarters, the average surprise being 5.56%. Shares of AMP have jumped 11.1% in the past year. The Zacks Consensus Estimate for AMP’s 2026 and 2027 earnings implies year-over-year growth of 17.2% and 11.5%, respectively. 

Nasdaq’s earnings surpassed estimates in each of the last four quarters, the average surprise being 5.67%. Shares of NDAQ have risen 2.3% in the past year. The Zacks Consensus Estimate for NDAQ’s 2026 and 2027 earnings implies year-over-year growth of 19.2% and 12.8%, respectively. 

CNO Financial’s earnings surpassed estimates in each of the last four quarters, the average surprise being 23.15%. Shares of CNO have rallied 44.1% in the past year. The Zacks Consensus Estimate for CNO’s 2026 and 2027 earnings implies year-over-year growth of 16.1% and 5.7%, respectively. 

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This article originally published on Zacks Investment Research (zacks.com).

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