Is Interactive Brokers (IBKR) Stock a Buy After a 71% Dividend Increase?

Source Motley_fool

Key Points

  • Interactive Brokers recently hiked its payout by 71%.

  • That still leaves it with a dividend yield below 1%.

  • There's a lot to like about this business.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

Are you familiar with Interactive Brokers (NASDAQ: IBKR)? You might want to learn more about this company, as its stock has been a standout performer. Check out the stock's average annual gains in the table below.

Time period

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Interactive Brokers

Past three years

56.35%

Past five years

33.91%

Past 10 years

24.81%

Past 15 years

22.83%

Data source: Morningstar.com as of Nov. 9, 2026.

Over the past decade, this stock has turned a $10,000 investment into about $100,000.

Current shareholders are likely excited by the company's third-quarter report, because among other things, it announced a dividend increase of 71.4% -- from $0.0875 per share per quarter to $0.15. That hike wasn't enough to give the stock a fat dividend yield, though -- the yield was recently just 0.8% -- but a fast-growing payout should still be of interest to investors.

The Interactive Brokers logo is shown against a red background.

Image source: The Motley Fool.

The recent quarterly report also featured:

  • Diluted adjusted earnings per share (EPS) rose 17.5% year over year.
  • Adjusted net revenue grew 16.2%.
  • Net interest income advanced 12%.
  • Customer accounts increased by 35% to 5.58 million.
  • Customer equity grew by 27% to nearly $1 billion.

The company has been around for nearly 50 years, and its mission is to "create technology to provide liquidity on better terms. Compete on price, speed, size, diversity of global products, and advanced trading tools." It offers electronic trading services for stocks, options, futures, currencies, bonds, gold, crypto, and more, and, along with its affiliates, executes more than 4 million trades per day.

But you might be wondering whether it's too late to buy the stock. Based on the stock's recent valuation, it seems fairly attractively priced. Its price-to-sales ratio of 3 is above the five-year average of 2, and the forward-looking price-to-earnings (P/E) ratio of 22 is nearly on par with the five-year average of 21. Those are reasonable numbers for a fast-growing business.

Near-term economic factors, such as interest rate changes, could provide headwinds or tailwinds for Interactive Brokers, but over the long run, the company is well-positioned to continue growing.

Should you buy stock in Interactive Brokers Group right now?

Before you buy stock in Interactive Brokers Group, consider this:

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*Stock Advisor returns as of November 15, 2026.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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