The XTB management committee has proposed a plan seeking to distribute the highest dividend in its history to shareholders. The proposal mentions that XTB will distribute approximately 75% of its total profits as dividends; this roughly amounts to $195 million. The proposal suggests allocating the remaining $49 million to the brokerage firm's reserve capital.

Management also proposes to set the dividend record date for June 5, 2024, and the payment date for June 20, 2024. The dividend per share is $1.24, with a yield of 7.2%. Interestingly, this is lower compared to last year. Increasing dividends are being pursued against the backdrop of XTB's expansion plans and a continuously growing customer base. Ideally, the brokerage's goal is to enter new geographic areas while expanding its user base, which currently boasts over a million traders.

While there can be legitimate debates about XTB's aggressive mission, currently only one conclusion is reasonable: higher dividends indeed signal the growth achieved by the company in the previous year. The stock has observed a growth of about 2% lately. Investors are confident in the company's short-term growth. The higher dividends bolster their confidence.

A stronger net profit further solidifies this sentiment.

XTB's goal is to transform its identity from being solely perceived as a forex/CFD broker to a global financial technology company. After surpassing a million users, the company has set this goal. It can certainly leverage the introduction of new products, such as ETF-based passive trading instruments. The UK market might be the company's first experience of growth, allowing it to enter the ISA (Individual Savings Account) industry, which has a scale of up to £400 billion.

Established in 2002, XTB is primarily known for offering products like indices, forex, and commodities. It has also ventured into the realm of cryptocurrencies, enabling its users to explore a whole new market. Its operations support legal currencies like the euro, dollar, and Swiss franc. More similar details about XTB can be found in our XTB review, which also highlights key features accessible to users regardless of experience and location.

Dividend payments began to develop after XTB announced the acquisition of Eagle Capital Futures, with the acquisition of a brokerage company in Indonesia having a significant impact on XTB's market presence in the Asian region.

The future response of XTB to the proposal put forward by the management committee remains to be seen.