Nasdaq Raises Quarterly Dividend 14.8% to $0.31

Nasdaq, Inc. raised its regular quarterly dividend 14.8% to $0.31 a share from $0.27. The first payment at the new rate had an ex-dividend date of June 12, 2026, while the latest $0.31 payment went ex-dividend on September 11, 2026.

Why the dividend changed

The dividend increase was announced alongside first-quarter results that showed broad growth and strong cash generation. Nasdaq reported first-quarter net revenue of $1.4 billion, an increase of 14% from a year earlier and 13% on an organic basis. GAAP diluted earnings per share increased 33% to $0.91, while non-GAAP diluted earnings per share increased 22% to $0.96. Nasdaq’s first-quarter results also showed $689 million of operating cash flow.

Chief Financial Officer Sarah Youngwood said cash generation allowed Nasdaq to return capital while reducing leverage and investing for growth. The company repurchased $548 million of common stock during the quarter and had $2.9 billion remaining under its board-authorized repurchase program. Those uses of cash indicate that the dividend increase formed part of a broader capital-allocation program rather than a one-off distribution.

The decision also follows the capital-deployment framework Nasdaq outlined when it agreed to acquire Adenza. That framework called for steadily increasing the dividend per share and payout ratio while repurchasing shares and reducing acquisition-related leverage. Nasdaq’s Adenza transaction announcement described the dividend commitment as part of the existing capital plan. The $0.31 declaration was a regular quarterly dividend, not a special distribution, according to the company’s dividend announcement.

Operating momentum provided additional context. Financial Technology revenue increased 20% in the first quarter, or 18% organically, and annualized recurring revenue reached $3.2 billion. Nasdaq said Financial Technology recorded its strongest first-quarter annualized contract-value bookings, with cloud products accounting for 80% of those bookings. Recurring and technology-related revenue can make cash generation less dependent on transaction volumes, although Nasdaq’s Market Services business remains exposed to trading activity.

Dividend track record

The increase extends Nasdaq’s dividend-growth streak to 13 consecutive years. The latest step is also larger than the increases visible in the recent annual record: the quarterly rate rose from $0.24 to $0.27 in 2025 before moving to $0.31 in 2026.

Full-year payments have advanced steadily. Nasdaq distributed $0.65 a share in 2020 and $0.70 in 2021, an increase of 8.8%. The total then rose 10.9% to $0.78 in 2022, 10.3% to $0.86 in 2023 and 9.3% to $0.94 in 2024. Payments reached $1.05 in 2025, an increase of 11.7%.

That sequence shows a pattern of annual increases implemented through periodic changes in the quarterly rate. The annual dividend per share is $1.16, and the five-year annualized dividend-growth rate is 10.6%. The full-year record from 2020 through 2025 contains no reduction.

Is the dividend covered?

Nasdaq’s dividend represents 33% of earnings. That payout ratio means the company distributes about one-third of earnings as dividends and retains the remainder for debt reduction, investment, acquisitions and repurchases. It also provides an earnings cushion between the dividend and total profit.

SmarterDividends rates the dividend A, with a safety score of 88. That grade means very safe, within the score range of 80-100. The rating reflects the moderate earnings payout, established growth record and capacity to fund the dividend alongside other capital priorities. It does not remove the need to monitor earnings, cash generation and leverage.

Yield and valuation

At a share price of $94.78, Nasdaq’s forward dividend yield is 1.22%. That is well below the Financial Services sector median forward yield of 5.70%. The shares therefore offer less current income than the sector median, while the dividend record has emphasized consistent growth rather than a high starting yield.

SmarterDividends estimates fair value at $80.73 and assigns a fair valuation verdict. Nasdaq’s market value is $53.0 billion. The valuation assessment and dividend safety grade measure different attributes: the first addresses the share price relative to estimated value, while the second addresses the durability of the payment.

What to watch

Nasdaq updated its 2026 non-GAAP operating-expense guidance to a range of $2.485 billion to $2.545 billion and maintained non-GAAP tax-rate guidance of 22.5% to 24.5%. Expense control, organic revenue growth and cash conversion are the operating measures most directly connected to the company’s ability to balance dividends, repurchases, investment and deleveraging. The first-quarter release provides the guidance and business-unit benchmarks.

Investors can also monitor Financial Technology bookings and the conversion of cloud contracts into recurring revenue. Nasdaq reported record first-quarter bookings in the division, but higher compensation and technology investment contributed to increased operating expenses.

Future quarterly declarations and payment dates remain subject to board approval. The next declaration will show whether Nasdaq keeps the quarterly rate at $0.31 after two payments at that level or makes another change.