Boston, MA 09/29/2014 (wallstreetpr) – Independent investment research company, Morningstar, Inc. (NASDAQ:MORN) said that its Board of Directors has given a permission to maintain its quarterly cash dividend of 17 cents a share. The company started paying dividend only three years back. As a result, its average dividend growth rate witnessed a whopping growth rate.
Payment Of Dividend
Morningstar, Inc. (NASDAQ:MORN) disclosed that it would pay a cash dividend to those eligible shareholders, whose name appears in the records book of the company as on October 10, its statement indicated. It would pay a dividend to qualified shareholders on October 31. The company’s stock would be traded ex-dividend from October 8.
On an annualized basis, the dividend rate works out to 68 cents a share. Its current dividend provided a yield of 1.00% while there was nothing to suggest for the five-year average paid since the company started paying a dividend only from the year 2010. However, the projected ten-year dividend yield workout to 15.01%.
The dividend payout ratio was only 37.00%, which means that there would scope for spontaneous increase in dividend rate in the coming years.
Growth And Dividend History
Though Morningstar, Inc. (NASDAQ:MORN) started paying a dividend only 2010, it has made concerted efforts to lift the dividend rate every year. As a result, its three-year average dividend growth rate worked out to 67.58%. Since Morningstar has been paying a dividend only from 2010, there was no growth rate for the five-year period.
According to a data from Nasdaq, Morningstar has paid a cash dividend of five cents a share in December 2010. It has maintained the same for another three quarters and lifted it to 10 cents a share. Again in December 2012, it has increased the dividend rate to 12.5 cents a share towards the end of 2012, and to 17 cents a share from January current year. It has maintained the same for the current quarter too. Going by the history, the company might announce an increase in dividend rate since the capital market has also been functioning strongly.