Canada Markets closed
  • S&P/TSX

    20,621.39
    -436.81 (-2.07%)
     
  • S&P 500

    4,397.94
    -84.79 (-1.89%)
     
  • DOW

    34,265.37
    -450.03 (-1.30%)
     
  • CAD/USD

    0.7947
    -0.0052 (-0.6517%)
     
  • CRUDE OIL

    84.83
    -0.72 (-0.84%)
     
  • BTC-CAD

    44,146.23
    -332.91 (-0.75%)
     
  • CMC Crypto 200

    812.50
    +569.82 (+234.81%)
     
  • GOLD FUTURES

    1,836.10
    -6.50 (-0.35%)
     
  • RUSSELL 2000

    1,987.92
    -36.12 (-1.78%)
     
  • 10-Yr Bond

    1.7470
    -0.0860 (-4.69%)
     
  • NASDAQ futures

    14,411.00
    -430.00 (-2.90%)
     
  • VOLATILITY

    28.85
    +3.26 (+12.74%)
     
  • FTSE

    7,494.13
    -90.88 (-1.20%)
     
  • NIKKEI 225

    27,522.26
    -250.64 (-0.90%)
     
  • CAD/EUR

    0.7001
    -0.0066 (-0.93%)
     

Virtu Financial's (NASDAQ:VIRT) Dividend Will Be US$0.24

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • VIRT

The board of Virtu Financial, Inc. (NASDAQ:VIRT) has announced that it will pay a dividend of US$0.24 per share on the 15th of December. Based on this payment, the dividend yield on the company's stock will be 3.3%, which is an attractive boost to shareholder returns.

View our latest analysis for Virtu Financial

Virtu Financial's Earnings Easily Cover the Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much. However, Virtu Financial's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

EPS is set to fall by 27.7% over the next 12 months. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 54%, which is comfortable for the company to continue in the future.

historic-dividend
historic-dividend

Virtu Financial Is Still Building Its Track Record

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The payments haven't really changed that much since 6 years ago. Modest dividend growth is good to see, especially with the payments being relatively stable. However, the payment history is relatively short and we wouldn't want to rely on this dividend too much.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Virtu Financial has impressed us by growing EPS at 24% per year over the past five years. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.

We Really Like Virtu Financial's Dividend

Overall, we like to see the dividend staying consistent, and we think Virtu Financial might even raise payments in the future. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Case in point: We've spotted 2 warning signs for Virtu Financial (of which 1 shouldn't be ignored!) you should know about. We have also put together a list of global stocks with a solid dividend.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting