Options traders and commodity junkies should recognize CME Group (CME) as the Chicago Mercantile Exchange, a financial entity that operates a host of futures exchanges as well as providing its own exchange-traded products and derivatives.
Naturally, CME Group took one on the chin as the financial markets melted down in 2008 and its stock still remains down from peak levels before the Great Recession. But now that things have stabilized and dividends are plush, it could be a good buy.
Consider CME paid 2.8 cents a quarter in 2003, and now pays 45 cents for an amazing dividend growth rate of more than 1,500% in 10 years.
Admittedly, a lot of that was fueled through acquisitions and expansion that won’t be replicated, and right now the payout ratio for CME is higher than the others on this list. But as the economy mends and capital markets heat up, expect big things from CME Group both in regards to share price and dividend payments.