The XTB Board of Management has put a proposal on the table, seeking to roll out the historically highest dividend for shareholders. The proposal mentions XTB allocating approximately 75% of the total profit to dividends; this roughly translates to $195 million. The proposal suggests allocating the remaining $49 million to the brokerage firm’s reserve capital.
The management has also proposed a dividend record date of June 5, 2024, and a payment date of June 20, 2024. The per-share dividend comes to $1.24 with a yield of 7.2%. Interestingly, this is on the lower side as compared to the previous year. Rolling out a higher dividend comes in the wake of XTB’s expansion plans and a rising customer base. Ideally, The brokerage firm aims to enter new geographical regions while scaling the user base, which already houses more than a million traders on the platform.
While one can rightly debate around the aggressive mission of XTB, it only makes sense to conclude at the moment that a higher dividend is indeed a sign of growth that the company has achieved in the previous year. The shares were last observed increasing by about 2%. Investors are confident about the short-term growth of the company. A higher dividend instills stronger confidence in their minds.
A stronger net profit further solidifies the sentiments.
XTB is aiming to transition its identity from being known as just an FX/CFD broker to being known as a global FinTech venture. The company set this goal after surpassing a million users. It could certainly leverage the introduction of new products, like passive trading tools that are based on ETFs. The British market could be the first to experience the growth of the company, allowing it to join the ISAs industry with a size of up to £400 billion, with ISAs being an acronym for the Individual Savings Accounts industry.
Founded in 2002, XTB is majorly known for offering products like indices, forex, and commodities. It has also ventured into the cryptocurrency segment, empowering its users to explore a new market altogether. Its operations support fiat currencies like EUR, USD, and CHF. More similar details about XTB can be found in our XTB review, which also sheds light on its key features that are available to users irrespective of their experience and geographical locations.
The development of dividend payouts comes days after XTB announced the acquisition of Eagle Capital Futures. The acquisition of a brokerage firm in Indonesia has significantly impacted XTB’s market in the Asian region. The finalization happened in January 2024, and details were made public in March 2024.
Moving forward, it remains to be seen how XTB will react to the proposal introduced by the management board.