Nasdaq (NDAQ) DIvidends Date & History

Key Takeaways

• Nasdaq, Inc. offers a trailing dividend yield of 1.18% and forward yield of 1.22%, with a quarterly payment of $0.27 per share.
• The company has raised its dividend for 13 consecutive years, achieving a 5-year compound annual growth rate (CAGR) of 10.2%.
• A low payout ratio of 33.98% supports strong dividend sustainability, backed by robust free cash flow (FCF) of $1.67 billion trailing twelve months (TTM).
• Financial health is solid, with long-term debt-to-equity at 70% and net profit margins around 22%.
• Yield is in line with peers like ICE (1.27%) and below CME (1.70%).

Dividend Overview

Nasdaq, Inc. (NDAQ) maintains a consistent quarterly dividend policy, paying $0.27 per share in its most recent distribution. This equates to an annual dividend of $1.08, delivering a trailing yield of 1.18% and forward yield of 1.22%. The most recent ex-dividend date was March 16, 2026, with payment on March 30, 2026. Over the past five years, the average dividend yield has been 1.28%. Nasdaq is positioned as a dividend growth stock rather than a high-yield play, prioritizing reinvestment in its exchange operations, data services, and technology while steadily increasing shareholder payouts. This profile appeals to investors seeking reliable income paired with capital appreciation potential in the financial markets infrastructure sector.

Dividend History and Growth

Nasdaq, Inc. has demonstrated a strong track record of dividend growth, with increases nearly every year over the past decade. Quarterly payouts have risen from $0.32 in 2016 to the current $0.27 post-2022 three-for-one stock split adjustment. Notable hikes include from $0.24 to $0.27 in 2025. The company has achieved 13 consecutive years of dividend increases, with a 5-year CAGR of 10.2% and no recorded cuts. This reflects a long-term strategy of balancing growth investments with shareholder returns, supported by expanding revenue from trading volumes, index licensing, and analytics services.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is bolstered by a conservative payout ratio of 33.98%, leaving ample room for growth and resilience during downturns. Earnings comfortably cover dividends, with TTM levered FCF at $1.67 billion providing strong cash generation. Financial stability is evident in a current ratio of 1.01, long-term debt-to-equity ratio of 70.12%, and healthy profitability metrics including a 29.24% operating margin and 21.64% net profit margin (TTM). Moderate leverage and consistent FCF growth position the dividend as highly secure.

Dividend Compared to Industry Peers

In the financial exchanges and data industry, NDAQ's 1.22% forward yield is competitive but modest compared to peers. CME Group offers 1.70%, while ICE provides 1.27%. Other players like Cboe Global Markets yield around 1.1%. Nasdaq's lower yield reflects its focus on growth, but its superior payout coverage and historical increases make it attractive relative to higher-yielding peers with elevated payout ratios.

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Is This Stock Attractive for Dividend Investors?

Nasdaq, Inc. (NDAQ) suits dividend growth investors who prioritize consistent raises over high current yields. Its 13-year streak of increases and 10%+ 5-year CAGR appeal to those building long-term income streams in stable sectors like financial infrastructure. Conservative investors may appreciate the ultra-low 34% payout ratio and FCF coverage, minimizing cut risks amid market volatility. However, income-focused buyers seeking 3%+ yields might look elsewhere, as the modest 1.2% yield lags ultra-high yield options. Long-term holders benefit from Nasdaq's market position, but cyclical trading volumes introduce variability. Overall, it fits balanced portfolios emphasizing growth with income reliability rather than immediate high payouts.

Disclaimer

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