Cboe Global Markets authorized up to an additional $550 million in share repurchases and declared a $0.86 fourth-quarter dividend, adding buyback capacity while setting the next payment's rate and timetable.
The company announced the board's decision Oct. 22. The dividend will be paid Dec. 15 to shareholders listed as owners on Nov. 30, Cboe said. The authorization covers Cboe common stock, but approval does not mean the company will make purchases.
Cboe reported that $536.8 million remained under prior repurchase authorizations as of June 30. Its second-quarter filing put the total authorization at $2.3 billion at that time. The filing showed that Cboe bought 127,015 shares from April through June, at an average $256.61 each, for a total of $32.6 million. It said repurchases were expected to be funded mainly from existing cash balances.
Any decision would take account of the stock's price, liquidity objectives, applicable rules and market conditions, Cboe said. The company can trade shares on public markets, use trading plans or negotiate purchases privately. The authorization has no fixed end date, and Cboe is not obligated to complete any transaction.
The $0.86 payment repeats Cboe's third-quarter dividend. In August, the company said it had raised that rate by 19% from $0.72, marking its 16th consecutive year of dividend increases. The new declaration maintains the higher rate for a second consecutive quarter.
Chief Executive Officer Craig Donohue said Cboe's cash flow and balance sheet give it room to fund growth priorities while returning capital. He said they provided “the flexibility to continue investing in our growth priorities while returning capital to shareholders.” Shareholders of record Nov. 30 are scheduled to receive the dividend Dec. 15.
