Fidelity National Information Services, Inc. (NYSE: FIS) raised its quarterly dividend by 21% to $0.47 per share.
The dividend is payable on March 25 to shareholders on record as of March 11. The annual dividend of $1.88 per share now reflects a dividend yield of 1.7%.
20% Annual Dividend Growth
The move aligns with the company’s capital allocation strategy to increase its annual dividend by approximately 20% per year, making it one of the Top Dividend Stocks.
The company aims to gradually increase its dividend payout ratio over several years, to approximately 35% of adjusted earnings from approximately 25% in 2021. To attain the same, the company plans to accelerate its target annual dividend growth rate to approximately 20% from 10%.
CEO’s Comments
FIS CEO, Gary Norcross, commented, “The Board’s decision to increase our quarterly dividend reflects continued confidence in the strength of our financial position, the durability of our business model and the future of FIS.”
He further added, “Our strong business fundamentals and robust free cash flow enable us to simultaneously invest for growth, meet our leverage targets and return capital to our shareholders.”
Wall Street’s Take
On January 27, Rosenblatt Securities analyst Sean Horgan reiterated a Hold rating on the stock with a price target of $129 (18.1% upside potential).
Consensus among analysts is a Strong Buy based on 15 Buys and 5 Holds. The average Fidelity National stock forecast of $143.58 implies 22.3% upside potential to current levels.
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