XP Inc. (XP) Approves Capital Distribution Following Revenue and Earnings Growth

XP Inc. (NASDAQ:XP) is a must-buy non-tech stock to invest in. On November 17, XP Inc. (NASDAQ:XP) reiterated its commitment to returning value to shareholders by approving three capital allocations. The board approved a $0.18-per-share dividend, payable on December 18 to shareholders of record as of December 10.

Additionally, the board of directors approved a new share buyback program of up to R$1 billion targeting outstanding Class A common shares. The board also approved the retirement of 10,970,754 Class A common shares, representing the company’s total shares.

The capital distribution follows a solid third quarter, during which XP generated R$4.9 billion in revenue, representing a 9% year-over-year increase. The increase was driven by growth in the corporate & issuer service businesses. Retail revenue increased 6% driven by float from checking and investment accounts. It also benefited from higher average volumes and higher interest rates. Net income rose 12% to R$1.3 billion, translating to basic earnings per share of R$2.51.

Meanwhile, Jorge Kuri of Morgan Stanley has reiterated XP is a Buy with a $26 price target. The positive stance stems from the company’s net income exceeding estimates amid a surge in retail net inflows that exceeded expectations by 30%.

XP Inc. (NASDAQ:XP) is a technology-driven financial services platform that operates primarily in Brazil, offering a wide range of low-fee products and services to both retail and institutional clients. The company’s business includes wealth management, securities brokerage, investment management, and corporate and issuer services, such as M&A advisory.

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Disclosure: None. This article is originally published at Insider Monkey.