DOW JONES NEWSWIRES
CME Group Inc. (CME) raised its quarterly dividend 22%,
according to a release Wednesday.
The popularity of dividends has increased alongside share
buybacks as companies try to appeal to investors and dig into cash
piles they guarded fiercely while the economy and financial markets
deteriorated.
CME, the world's largest derivatives exchange by contract
volume, raised the dividend to $1.40 from $1.15, with the increase
costing roughly $17 million each quarter.
In the fourth quarter, CME's profit unexpectedly fell despite a
17% increase in trading volume, while it predicted expenses would
rise about 9.6% this year as it builds out new derivatives services
and invests in other new projects.
CME shares closed Wednesday up 0.4% at $301.40 and weren't
active after the news. The stock has risen 9% in the last year,
underperforming the wider market.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com