Global Payments, Inc. : GPN-US: Dividend Analysis : June 09th, 2017 (record date) : By the numbers : June 8, 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 2.86 percent. This compares to a peer average dividend yield of 0.67 percent and a payout level of 22.01 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 83 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality, 3 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 378.88x, 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 March 31, 2017), GPN-US paid a high 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 163.83x), investing cash flow (coverage of -28.24x), issuance cash flow (coverage of -85.59x) and twelve-month prior cash (coverage of 261.75x), for a total dividend coverage of 309.23x.

GPN-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -20.06x) and net share buybacks (coverage of -62.71x). Thus, the total coverage including share buybacks is 442.59x, 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 dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-05-31 2013-05-31 2014-05-31 2015-05-31 2016-12-31 Latest
Dividend Yield (%) 0.19 0.17 0.12 0.08 0.03 0.05
Dividend Payout (%) 3.35 2.87 2.35 1.92 1.43 1.43

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 following segments: North America, Europe, and Asia-Pacific. The North America segment offers numerous services including: restaurant, hospitality, retail, convenience stores and petroleum, professional services, automotive, and lodging. The Europe segment provides ecommerce and omnichannel solutions to neighboring countries like the United Kingdom, the Republic of Ireland, Spain, Hungary, Slovakia, Romania, and the Russian Federation. The Asia-Pacific segment derives its revenue through operations in the following countries and territories: Australia, Australia, Brunei, China, Hong Kong, India, Macau, Malaysia, Maldives, New Zealand, the Philippines, Singapore, Sri Lanka, and Taiwan. The company was founded in January 31, 2001 and is headquartered in Atlanta, GA.


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