Global Payments, Inc. : GPN-US: Dividend Analysis : February 10th, 2017 (record date) : By the numbers : March 22, 2017

Our analysis is based on comparing Global Payments, Inc. with the following peers – Euronet Worldwide, Inc., Fidelity National Information Services, Inc., Total System Services, Inc., Fiserv, Inc., EVERTEC, Inc., Western Union Company, Vantiv, Inc. Class A, eBay Inc., Intuit Inc. and Mastercard Incorporated Class A (EEFT-US, FIS-US, TSS-US, FISV-US, EVTC-US, WU-US, VNTV-US, EBAY-US, INTU-US and MA-US).

Global Payments, Inc.’s dividend yield is 0.05 percent and its dividend payout is 2.41 percent. This compares to a peer average dividend yield of 0.96 percent and a payout level of 23.12 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to November 30, 2016), GPN-US paid a medium quality dividend, which represents a yield of 0.05% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 168.61x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to November 30, 2016), GPN-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 54.94x), investing cash flow (coverage of -323.99x), issuance cash flow (coverage of 277.45x) and twelve-month prior cash (coverage of 167.36x), for a total dividend coverage of 169.61x.

GPN-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -42.43x). Thus, the total coverage including share buybacks is 212.04x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-05-31 2013-05-31 2014-05-31 2015-05-31 2016-05-31 Latest
Dividend Yield (%) 0.19 0.17 0.12 0.08 0.05 0.05
Dividend Payout (%) 3.38 2.9 2.37 1.94 1.96 2.41

A complete list of metrics and analysis is available on the company page.

Company Profile

Global Payments, Inc. engages in the provision of payment technology services. It operates through the North America Merchant Services and International Merchant Services segments. The North America Merchant Services segment includes direct sales, integrated payment solutions, independent sales organizations channel, cash access solutions to the gaming vertical market, check services, and indirect merchant services. The International Merchant Services segment provides payment services outside of North America. The company was founded in January 31, 2001 and is headquartered in Atlanta, GA.

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