CME Group Strong, Dividend Stronger

On Wednesday, leading U.S. futures trading exchange operator, CME Group Inc. (CME) announced a substantial dividend increment of 22% from the prior $1.15 per share, increasing the dividend payout ratio to 35% from 30%. The hiked quarterly cash dividend of $1.40 per share will be paid on March 25, 2011 to the shareholders of record as of March 10, 2011.Over the last few quarters, CME has been posting strong trading volumes, which has also helped in strengthening its cash flow and capital position. Hence, CME is meticulously working to expand its operations and simultaneously return wealth to investors, thereby retaining market confidence. However, the company’s high long-term debt remains a cause for concern. Last month, the company also prepaid a $421 million loan under the three-year credit and term loan agreement that was due in August 2011. This revolving facility was further replaced with a $1.0 billion multi-currency three-year... Read more