From 24/7 Wall St. · Chris Lange · · 1m
FIS Dividend Gatekeeper
FIS's 2.8x gross leverage target decides dividend growth or reset.
In brief
FIS's 2.8x gross leverage target decides dividend growth or reset. FIS's dividend growth depends on hitting a 2.8x gross leverage target to restart buybacks and accelerate dividends. Originally reported by 24/7 Wall St..
FIS Debt and Dividend History
Fidelity National Information Services carries $21.2 billion debt after the Total Issuing Solutions deal and has reset its dividend twice since 2023.
Gross Leverage Ratio Target
FIS aims for a 2.8x gross leverage ratio to determine cash availability for dividends and buybacks.
Why Payout Ratio Fails
Payout ratio ignores cash tied up in debt reduction, as seen in Q2 buybacks of $42 million versus $301 million in Q3 2025.
Dividend History
The quarterly dividend increased to $0.44 in 2026 after resetting to $0.36 in 2024 following the Worldpay separation.
Dividend Policy
Dividend growth targets adjusted EPS growth at 7.0-8.5% for 2026, with cash coverage from $2.2 billion trailing twelve-month free cash flow.
What to Watch
Progress toward 2.8x gross leverage and buyback resumption will determine if dividends grow or reset.
The essence
FIS's dividend growth depends on hitting a 2.8x gross leverage target to restart buybacks and accelerate dividends.
