Amdocs (DOX) DIvidends Date & History

Key Takeaways

• Amdocs offers a current dividend yield of approximately 3.5%, paid quarterly at $0.569 per share.
• The company has increased its dividend for 14 consecutive years, with a 5-year growth rate of over 10% annually.
• Payout ratio stands at around 40-42%, indicating strong sustainability backed by earnings.
• Free cash flow (FCF) of $755 million TTM covers dividends comfortably, with FCF payout under 30%.
• Low debt-to-equity ratio of 0.27 supports financial stability for ongoing dividend payments.
• Higher yield than many IT services peers like CTSH (2.6%) and ACN (~1.2%).

Dividend Overview

Amdocs Limited (DOX), a leading provider of software and services for communications and media companies, maintains a reliable quarterly dividend policy. The current annual dividend is $2.28 per share, delivering a yield of about 3.5% based on recent stock prices. The most recent quarterly payment of $0.569 per share was made on April 24, 2026, following an ex-dividend date of March 31, 2026. This positions Amdocs as a dividend growth stock, characterized by consistent increases over more than a decade rather than pursuing ultra-high yields. With a focus on telecom software, the company's steady cash generation from long-term contracts supports this profile, appealing to investors seeking predictable income in the technology sector.

Dividend History and Growth

Amdocs has demonstrated a strong commitment to shareholder returns through its dividend policy. The company has raised its dividend for 14 consecutive years, reflecting disciplined capital allocation and operational resilience. Over the past five years, the dividend has grown at an annualized rate of approximately 10%, outpacing many technology peers. Historical data shows quarterly payouts steadily increasing from around $0.29 in 2019 to the current $0.569, with no cuts during economic challenges. This long-term strategy aligns with Amdocs' stable revenue from recurring services in the telecom industry, enabling consistent enhancements to support investor confidence.

Dividend Sustainability and Payout Ratio

Amdocs' dividend appears highly sustainable, underpinned by solid financial metrics. The payout ratio is approximately 40-42% of earnings, leaving ample room for reinvestment and growth. Trailing twelve-month free cash flow (FCF) reached $755 million, easily covering the roughly $240 million in annual dividends, resulting in an FCF payout ratio below 30%. Earnings per share (EPS) of $5.17 TTM provide robust coverage. The balance sheet remains conservative, with a debt-to-equity ratio of 0.27 and $248 million in cash against $952 million in total debt. Operating cash flow generation from managed services further bolsters the ability to maintain and potentially grow payouts amid industry cycles.

Dividend Compared to Industry Peers

In the IT services and software sector, Amdocs' 3.5% yield stands out as attractive. Peers like CTSH offer around 2.6%, while ACN yields about 1.2%. JKHY provides roughly 1.8%, and many others like EPAM pay no dividend. The industry average hovers around 1-2%, making Amdocs' combination of yield and 14-year growth streak compelling for income-focused investors in telecom and IT services.

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Is This Stock Attractive for Dividend Investors?

Amdocs appeals to dividend growth investors who prioritize consistent increases and moderate yields over high immediate income. Its 14-year streak of raises, averaging 10% annually, combined with a 3.5% yield, suits those building long-term portfolios in technology. Conservative investors may appreciate the low payout ratio, strong FCF coverage, and manageable debt, which mitigate risks in cyclical IT services. Income seekers in telecom software could find the quarterly payouts reliable, supported by recurring revenues from major carriers. However, growth-oriented investors might note slower revenue expansion compared to pure AI plays. Overall, Amdocs fits balanced dividend strategies emphasizing sustainability and compounding rather than aggressive yields, though sector volatility warrants monitoring.

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