Our analysis is based on comparing MarketAxess Holdings, Inc. with the following peers – CME Group Inc. Class A, Nasdaq, Inc., Intercontinental Exchange, Inc. and CBOE Holdings, Inc. (CME-US, NDAQ-US, ICE-US and CBOE-US).
MarketAxess Holdings, Inc.’s dividend yield is 0.60 percent and its dividend payout is 30.08 percent. This compares to a peer average dividend yield of 1.20 percent and a payout level of 42.29 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 100 out of a possible score of 100 looks sustainable.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), MKTX-US paid a high quality dividend, which represents a yield of 0.60% at the current price.
- Dividends paid during each of the last five years were consistently of high quality.
- The ending cash balance, with a dividend coverage of 3.37x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2017), MKTX-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 4.18x), investing cash flow (coverage of -2.15x), issuance cash flow (coverage of -0.87x) and twelve-month prior cash (coverage of 3.39x), for a total dividend coverage of 4.37x.
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 Yield (%)||4.85||0.79||0.89||0.71||0.7||0.6|
|Dividend Payout (%)||27.67||28.82||32.49||31.35||31.14||30.08|
A complete list of metrics and analysis is available on the company page.
MarketAxess Holdings, Inc. operates as a electronic trading platform that allows investment industry professionals to trade corporate bonds and other types of fixed-income instruments. It also provides data and analytical tools that help its clients to make trading decisions and facilitate the trading process by electronically communicating order information between trading counterparties. The company’s patented trading technology allows institutional investor clients to request competitive, executable bids, or offers from multiple broker dealers simultaneously and to execute trades with the broker dealer of their choice. MarketAxess Holdings was founded by Richard M. Mcvey on April 11, 2000 and is headquartered in New York, NY.
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