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, as reiterated by the company’s recent commitment to returning value to shareholders. On November 17, XP Inc. approved three capital allocations, including a $0.18-per-share dividend to be paid on December 18 to shareholders of record as of December 10.

In addition to the dividend, 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 decision to distribute capital follows a strong third quarter performance by XP Inc. The company generated R$4.9 billion in revenue, a 9% year-over-year increase driven by growth in the corporate & issuer service businesses. Retail revenue also saw a 6% increase, fueled by float from checking and investment accounts, higher average volumes, and higher interest rates. Net income rose 12% to R$1.3 billion, resulting in basic earnings per share of R$2.51.

Analysts at Morgan Stanley, including Jorge Kuri, have reiterated a Buy rating on XP Inc. with a $26 price target. The positive outlook is supported by the company’s net income exceeding estimates and a surge in retail net inflows that exceeded expectations by 30%.

XP Inc. is a technology-driven financial services platform operating 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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In conclusion, XP Inc. continues to demonstrate its commitment to shareholder value through capital distributions and strong financial performance. Investors looking for opportunities in the non-tech sector may find XP Inc. to be a promising investment option.