Booz Allen Hamilton Holding (BAH) DIvidends Date & History

Key Takeaways

• Booz Allen Hamilton pays a quarterly dividend of $0.59 per share, or about $2.36 annually, with a dividend yield near 3.2%.
• The company has raised its dividend for 14 consecutive years, supported by a five-year average growth rate of roughly 11.5%.
• A modest payout ratio of around 34% of earnings and about 30% of free cash flow leaves ample room for future increases.
• BAH's yield is well above the typical 1% range for its industry peers, making it stand out among government-services and consulting companies.
• The stock is best suited for dividend growth investors seeking a blend of current income and long-term payout expansion.

Dividend Overview

Booz Allen Hamilton Holding Corporation, traded on the NYSE as BAH, is a management and technology consulting firm serving primarily U.S. government clients. The company maintains a reliable quarterly dividend policy, currently paying $0.59 per share each quarter for an annualized payout of approximately $2.36 per share. At recent prices, this translates to a dividend yield of roughly 3.2%, which is notably generous for a company in the consulting and government-services sector. Booz Allen is generally considered a dividend growth stock rather than a high-yield income stock, as it pairs a solid starting yield with a long track record of consistent annual increases. Recent dividend dates include an ex-dividend date of August 14, 2026, with payment made on August 28, 2026.

Dividend History and Growth

Booz Allen Hamilton has demonstrated a disciplined, shareholder-friendly capital return strategy over the past decade and a half. The company has increased its dividend for 14 consecutive years, a streak that underscores management's commitment to returning capital to shareholders. The dividend has climbed steadily from $0.37 per quarter in late 2021 to $0.59 per quarter today, reflecting a five-year average annual growth rate of roughly 11.5%. This consistent upward trajectory is driven by strong cash generation from Booz Allen's long-term government contracts, which provide a relatively stable revenue base. While the pace of increases has moderated slightly in recent quarters as the dividend has grown larger, the company continues to raise the payout each year without interruption or reduction.

Dividend Sustainability and Payout Ratio

Booz Allen Hamilton's dividend appears highly sustainable. The company pays out only about 34% of its earnings as dividends, a level that is comfortably below the roughly 75% threshold often cited as a warning sign. On a cash-flow basis, the coverage is even stronger, with the dividend consuming approximately 30% of free cash flow. This conservative payout ratio gives management substantial flexibility to fund the business, pursue strategic acquisitions, and continue raising the dividend over time. Booz Allen also generates consistent free cash flow thanks to its long-duration government contracts, which adds stability to the payout. Overall, the combination of modest payout ratios, steady cash generation, and a long dividend growth streak indicates that the dividend is well covered and unlikely to face pressure in the near term.

Dividend Compared to Industry Peers

Within the government-services and defense-consulting space, Booz Allen Hamilton's dividend yield of roughly 3.2% is among the highest. For comparison, peers such as LDOS (Leidos Holdings) and SAIC (Science Applications International Corporation) typically carry yields in the low-to-mid single digits, while CACI (CACI International) has historically not paid a regular dividend. The broader industry median dividend yield is often cited near 1%, making BAH's payout particularly attractive relative to its sector. This elevated yield reflects both Booz Allen's commitment to returning cash to shareholders and the stock's valuation, which can fluctuate with government budget cycles. For dividend investors, BAH offers a compelling combination of above-average current income and a longer, more consistent growth record than many direct competitors.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool designed to help traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener can also help identify dividend stocks, income-focused investments, trending names, breakout candidates, and emerging market opportunities far more efficiently than manual screening. For investors researching companies like BAH, the AI Screener offers a streamlined way to compare dividend yield, payout history, and growth potential across an entire sector at once. Explore the tool to uncover your next income opportunity.

Is This Stock Attractive for Dividend Investors?

Booz Allen Hamilton is likely to appeal most to dividend growth investors and long-term, total-return-oriented investors rather than those seeking the highest possible immediate income. With a yield near 3.2%, a 14-year track record of annual increases, and a five-year growth rate above 10%, BAH offers a balanced profile of current income plus meaningful payout growth. The company's conservative payout ratio and dependable free cash flow also make it a reasonable consideration for more conservative investors who prioritize dividend reliability and sustainability. However, investors should keep in mind that Booz Allen's fortunes are closely tied to U.S. government spending and defense budgets, which can shift with policy changes. Additionally, the stock's yield has been elevated in part by price volatility, meaning capital appreciation and income are not guaranteed. As always, suitability depends on individual goals, time horizon, and risk tolerance.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations