Intercontinental Exchange, Inc. (NYSE: ICE) will increase its dividend on September 30 to US $ 0.33. Although the dividend is now higher, the yield is only 1.1%, which is lower than the industry average.
Intercontinental Exchange dividend well covered by earnings
The dividend yield is a bit low, but the sustainability of payments is also an important part of valuing an income security. However, prior to this announcement, the Intercontinental Exchange dividend was comfortably covered by both cash flow and earnings. As a result, much of what she earned was reinvested in the business.
Going forward, earnings per share are expected to drop 3.5% over the next year. If the dividend continues on the same path as it has recently been, we estimate that the payout ratio could be 30%, which is comfortable for the company to continue in the future.
Intercontinental exchange does not have a long payment history
Even though the company has been paying a steady dividend for some time, we would like to see a few more years before we feel comfortable relying on it. The dividend went from US $ 0.52 in 2014 to the most recent annual payment of US $ 1.32. This means that he increased his distributions by 14% per year during this period. It’s always nice to see strong dividend growth, but with such a short payment history we wouldn’t be inclined to rely on it until a longer history has been developed.
The dividend seems likely to increase
Investors who have held shares of the company for the past several years will be pleased with the dividend income they have received. It is encouraging to see that the Intercontinental Exchange has increased its earnings per share by 16% per year over the past five years. Intercontinental Exchange certainly has the potential to increase its dividend in the future with earnings on an uptrend and a low payout ratio.
Intercontinental Exchange Looks Like Great Dividend Stock
In summary, it is always positive to see the dividend increase and we are particularly satisfied with its overall sustainability. Profits easily cover the company’s distributions and the business generates a lot of cash. Note that profits are expected to decline over the next 12 months, which won’t be a problem if this doesn’t become a trend, but could cause some turmoil next year. Overall, this ticks a lot of the boxes that we look for when choosing an income stock.
Companies with a stable dividend policy are likely to benefit from greater investor interest than those with a more inconsistent approach. Still, there are a host of other factors that investors need to consider, aside from dividend payments, when analyzing a business. To this end, Intercontinental Exchange has 4 warning signs (and 1 that should not be ignored) we think you should know. Looking for more high yield dividend ideas? Try our organized list of big dividend payers.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
Do you have any feedback on this item? Are you worried about the content? Enter into a contract with us directly. You can also send an email to the editorial team (at) simplywallst.com.
The mention sources can contact us to remove/changing this article
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]