The financial world thrives on whispers, hints, and hidden signals. While earnings calls and quarterly reports provide the official narrative, sometimes the most compelling insights come from what *isn't* said. Fiserv Inc. (FI), a giant in the financial technology sector, recently released its current quarter financial data. Missing, however, was the usual accompanying transcript of an earnings call. This silence, combined with intriguing movements in Fiserv's financial data, might be signaling something truly unexpected: a potential return to issuing dividends.

Fiserv, the company behind ubiquitous payment processing services and the innovative Clover POS system, has a long and complex history with dividends. They initiated a dividend program in 2013, but abruptly suspended it in 2017, presumably to prioritize strategic acquisitions and internal investments. Since then, investors have patiently (and perhaps impatiently) awaited any indication of a dividend comeback.

The absence of a current quarter transcript, while initially puzzling, could actually be the very clue we've been searching for. Companies often forgo earnings calls when they have significant news pending, news they can't yet disclose due to regulatory restrictions. Could Fiserv be preparing for a major announcement that would justify a dividend reinstatement?

Let's delve into the numbers. Fiserv boasts a robust market capitalization of $88.5 billion [Source]. Their recent quarterly earnings growth of 39.3% year-over-year is nothing short of impressive, showcasing the company's ability to capitalize on the ever-growing digital payments landscape [Source]. Furthermore, Fiserv has been aggressively buying back stock, with outstanding shares decreasing from 648 million at the end of 2022 to 595 million in the most recent quarter [Source]. This action often indicates a company's belief that its stock is undervalued and that it has surplus capital.

Fiserv's Outstanding Shares (2019-2024)

Now, let's consider the hypothesis: Fiserv is laying the groundwork for a dividend reinstatement. The company's strong financial performance, coupled with its stock buyback program, suggests a healthy cash position and confidence in its future prospects. The lack of an earnings call could be a strategic silence before a major announcement, possibly related to a game-changing acquisition or a divestiture that unlocks substantial value.

Imagine this: Fiserv acquires a major player in a high-growth segment like Buy Now, Pay Later (BNPL), further cementing its dominance in the payments industry. Such a move would likely be met with enthusiasm from investors and send the stock price soaring. Alternatively, Fiserv could divest a less-strategic business unit, freeing up even more capital for dividends and buybacks.

The numbers themselves paint a compelling picture. Fiserv's operating margin (TTM) is a healthy 24.19%, and its return on equity (TTM) stands at 10.92%, demonstrating efficient use of capital [Source]. Their "best guy," David Togut of Evercore ISI [Source], likely has insights into these internal deliberations, but he, like the company, is currently maintaining a strategic silence.

Adding fuel to this speculative fire is a fun fact about Fiserv: they have a history of surprising investors. In 2018, they executed a 2-for-1 stock split, a move that delighted shareholders and signaled confidence in the company's growth trajectory [Source]. Could a dividend reinstatement be the next unexpected move, designed to reward patient investors and attract new ones?

Of course, this is all speculation at this point. The missing transcript remains a tantalizing puzzle piece, leaving analysts and investors to decipher the company's intentions. However, the evidence, while circumstantial, is intriguing. Fiserv's strong financial performance and strategic actions suggest a company poised for growth and potentially ready to share its success with shareholders through dividends. Only time will tell if the silence is truly golden.

"Fun Fact: Fiserv's name is a portmanteau of "Financial Services" and "Preserve," reflecting the company's mission to help financial institutions preserve and grow their businesses."