April 13, 2026 a 12:46 pm
JKHY: Dividend Analysis - Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc. presents a solid dividend profile with a historical dividend growth and reliable payout ratios. The company's financial metrics suggest a stable income with a focus on shareholder returns. Despite a modest dividend yield, Jack Henry's continuous dividend payouts over 37 years demonstrate strong commitment to returning value to its shareholders.
📊 Overview
As a company operating within the technology sector, Jack Henry & Associates offers a dividend yield of 1.41%, with a current dividend per share standing at 2.25 USD. The firm boasts an impressive 37 years of consistent dividend history with no recent cuts or suspensions. This stability highlights the company's resilience and dedication to rewarding its shareholders.
| Key Metrics | Values |
|---|---|
| Sector | Technology |
| Dividend Yield | 1.41% |
| Current Dividend Per Share | 2.25 USD |
| Dividend History | 37 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
A consistent dividend history is a testament to Jack Henry's commitment to its shareholders. Over the past 37 years, the company has never had to cut or suspend its dividend, indicating strong financial management and stability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 0.61 |
| 2025 | 2.32 |
| 2024 | 2.20 |
| 2023 | 2.08 |
| 2022 | 1.96 |
📈 Dividend Growth
Dividend growth is a critical indicator of a company's maturation and its ability to increase shareholder returns. Jack Henry's dividend growth over the last 3 and 5 years has been 5.78% and 6.16%, respectively. This steady growth signals ongoing profitability and robust cash flow management.
| Time | Growth |
|---|---|
| 3 years | 5.78% |
| 5 years | 6.16% |
The average dividend growth is 6.16% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
A sustainable payout ratio is crucial to understand how well a company covers its dividends with earnings. Jack Henry's EPS-based payout ratio is 32.17%, and its FCF-based payout ratio is 24.94%, both indicating the company's strong capacity to sustain its dividend payments without overleveraging profits or cash flows.
| Key Figure | Ratio |
|---|---|
| EPS-based | 32.17% |
| Free Cash Flow-based | 24.94% |
These payout ratios demonstrate Jack Henry's well-balanced approach to distributing its income, maintaining both growth and a reliable dividend payout.
⚙️ Cashflow & Capital Efficiency
Cash flow and capital efficiency metrics provide insight into a company's ability to generate sufficient cash flow for investment and dividends. Jack Henry relies on a strong free cash flow yield of 6.14%, underpinning its dividend policy.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.47% | 4.28% | 2.81% |
| Earnings Yield | 3.46% | 3.21% | 3.01% |
| CAPEX to Operating Cash Flow | 7.62% | 10.23% | 10.27% |
| Stock-based Compensation to Revenue | 0.77% | 1.30% | 1.38% |
| Free Cash Flow / Operating Cash Flow Ratio | 91.68% | 89.77% | 89.73% |
Jack Henry's cash flow metrics reveal its ability to generate sustainable earnings and maintain an effective balance of expenses and investments, necessary for long-term value creation.
🏦 Balance Sheet & Leverage Analysis
Understanding leverage and balance sheet strength is vital in assessing financial stability. With minimal debt levels and strong ratios, Jack Henry positions itself well for future uncertainties.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.00 | 0.00 | 8.14% |
| Debt-to-Assets | 0.00 | 0.00 | 5.13% |
| Debt-to-Capital | 0.00 | 0.00 | 7.53% |
| Net Debt to EBITDA | -12.72% | -14.27% | 16.42% |
| Current Ratio | 1.27 | 1.27 | 0.99 |
| Quick Ratio | 1.27 | 1.27 | 0.997 |
| Financial Leverage | 1.43 | 1.43 | 1.59 |
The balance sheet strength of Jack Henry displays a lack of significant debt, bolstering its capacity to endure financial stress while maintaining operational flexibility.
📊 Fundamental Strength & Profitability
Profitability ratios serve as a mirror to a company's economic value generation. Jack Henry's sound return metrics and margins affirm its efficiency in deploying capital.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 21.39% | 17.92% | 19.90% |
| Return on Assets | 14.97% | 12.54% | 12.54% |
| Margins: Net | 19.19% | 17.23% | 17.65% |
| EBIT Margin | 25.11% | 23.22% | 23.57% |
| EBITDA Margin | 33.73% | 32.24% | 32.75% |
| Gross Margin | 42.71% | 41.35% | 41.33% |
| Research & Development to Revenue | 6.85% | 6.69% | 6.87% |
With robust profitability crafted via strong returns on equity and assets, Jack Henry continues delivering above-average margins, affirming its competitive advantage and disciplined business practices.
📉 Price Development
🎯 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 35/40
⭐ Rating
Jack Henry & Associates, Inc. offers a compelling dividend value proposition, with a strong balance of stability, growth opportunities, and financial health. Investors seeking reliable income will find its hallmark of consistent dividends attractive and economically justified, making it a strong contender for income-focused portfolios.