Is CME a good stock to buy?
We came across a bullish thesis on CME Group Inc. on DividendInvestor’s Substack
In this article, we will summarize the bulls’ thesis on CME. CME Group Inc.’s share was trading at $286.82 as of May 5th. CME’s trailing and forward P/E were 24.77 and 23.75 respectively according to Yahoo Finance.
Copyright: convisum / 123RF Stock Photo CME Group operates as the core infrastructure layer of global finance, effectively monetizing volatility by acting as the central marketplace for risk transfer across interest rates, commodities, and financial derivatives. While the market focuses on its modest 1.79% regular dividend yield and a share price roughly 12% below its peak, this overlooks a differentiated capital return model combining a steadily growing quarterly dividend with a substantial variable dividend tied to annual free cash flow. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential In 2025, this variable payout reached $6.15 per share, bringing the total yield to approximately 4.2%, far above what surface-level metrics suggest. The company’s dominance is underpinned by deep liquidity network effects and unmatched scale, with Q1 2026 average daily volume hitting a record 36.2 million contracts, up 22% year-over-year, including 30% growth internationally, reflecting a structural increase in global hedging demand.