Cboe Global Markets (CBOE) will raise its quarterly dividend by 16.7 percent to 42 cents per share in 2020. This follows a 16.1 percent dividend hike  to $0.36 per share in 2019. The company has now increased its dividend for 10 consecutive years.

The next dividend will be paid on September 15, 2020 to shareholders of record on August 28, 2020. The new annualized dividend rate of $1.68 per share yields 1.9% at a stock price of $88.26.

In the press release dated August 14, 2020, the company comments on this latest dividend hike: "This year marked the 10th anniversary of our IPO and each year since, we've raised our dividend, demonstrating Cboe Global Markets' ongoing commitment to returning capital to our shareholders," said Ed Tilly, Chairman, President and Chief Executive Officer, Cboe Global Markets. "The increase in our dividend reflects Cboe's financial strength and cash flow generating capabilities, while we execute on our growth initiatives and deliver sustainable returns to our shareholders."

Cboe Global Markets has now raised its dividend by double digits for three consecutive years with an average annual increase of 12.8 percent in the last five years. Year-to-date CBOE stock price is down 26.5 percent resulting in a current market cap of $9.6 billion. The company pays approximately $184 million in dividends to shareholders annually when this dividend hike is included.

Cboe Global Markets, Inc., formerly CBOE Holdings, Inc., operates markets that offer options trading on various market indexes and futures contracts.  The company's subsidiaries include Chicago Board Options Exchange (CBOE), CBOE Futures Exchange (CFE), C2 Options Exchange (C2), Market Data Express and Chicago Options Exchange Building Corporation. Cboe Global Markets is headquartered in Chicago with a network of domestic and global offices across the Americas, Europe and Asia, including main hubs in New York, London, Kansas City and Amsterdam. The company has paid a dividend to shareholders every year since 2010.