NEW YORK - Nasdaq, Inc. (NASDAQ:NDAQ) announced today that its Board of Directors has approved a regular quarterly dividend of $0.24 per share on its outstanding common stock. The declared dividend is to be distributed on December 20, 2024, to shareholders who are on record as of the close of business on December 6, 2024.
The company's declaration of future quarterly dividends and the setting of record and payment dates will remain subject to the Board of Directors' approval. Nasdaq is a global technology company that offers a range of services, including data, analytics, software, and exchange capabilities, to clients across the financial industry.
This decision to issue dividends is in line with Nasdaq's strategic financial planning, although the company cautions that forward-looking statements such as these carry risks and uncertainties. Factors that could influence actual outcomes include market conditions, regulatory changes, and other economic pressures.
Nasdaq emphasizes that these forward-looking statements are not guarantees of future performance, and actual results could vary materially from those projected. The company regularly assesses its dividend program and future payment obligations considering various internal and external factors.
The information provided in this announcement is based on a press release statement and has been released without any commitment to update the forward-looking statements, which are subject to change based on new information or future events. Investors and shareholders are encouraged to review Nasdaq's filings with the U.S. Securities and Exchange Commission for further details on the company's financial health and risk factors.
Nasdaq's commitment to improving liquidity, transparency, and integrity in the global economy is reflected in its diverse offerings that support clients in executing their business vision with confidence. The company continues to aspire to provide industry-leading platforms and services to its corporate clients and partners within the financial ecosystem.
In other recent news, Nasdaq reported an increase in its Average Daily Volume (ADV) for Q3 2024, exceeding expectations. This performance, as well as a 13% year-over-year increase in U.S. equity options volumes, suggests a potential revenue increase for the same period. However, a contrasting downturn was observed in European options and futures contracts.
Significant changes have been made in Nasdaq's revenue accounting for AxiomSL contracts, leading to a one-time, non-cash GAAP revenue reduction of $32 million in Q3 2024. Nasdaq also announced leadership changes, appointing Stephanie Champion as the new Executive Vice President and Head of Nasdaq Verafin.
On the analyst front, TD Cowen maintained its Hold rating on Nasdaq, while RBC Capital Markets and Oppenheimer both gave an Outperform rating. Citi, however, maintained a Neutral rating. Nasdaq has also agreed to pay $22 million to settle charges with the U.S. Commodity Futures Trading Commission and has filed with the Securities and Exchange Commission to launch Nasdaq Bitcoin Index Options. These are among the recent developments for Nasdaq.
InvestingPro Insights
Nasdaq's recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has raised its dividend for 12 consecutive years, demonstrating a commitment to returning value to shareholders. This consistency is particularly noteworthy given the company's current dividend yield of 1.3%.
The company's financial performance has been robust, with a revenue growth of 7.57% over the last twelve months as of Q2 2024, reaching $6.567 billion. This growth is complemented by a healthy gross profit margin of 66.0%, indicating strong operational efficiency.
InvestingPro Tips highlight that Nasdaq is trading near its 52-week high, with a strong return of 51.69% over the past year. This performance suggests investor confidence in the company's strategy and market position. Additionally, analysts anticipate that Nasdaq will remain profitable this year, which bodes well for its ability to maintain its dividend program.
It's worth noting that Nasdaq's P/E ratio stands at 42.69, which some may consider high. However, this should be viewed in the context of the company's consistent growth and market leadership in financial technology services.
For investors seeking a deeper understanding of Nasdaq's financial health and future prospects, InvestingPro offers 11 additional tips, providing a comprehensive analysis to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.