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.

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

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.

While we acknowledge the potential of XP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XP and that has 100x upside potential, check out our report about this cheapest AI stock.

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