Jacobs Solutions (J) DIvidends Date & History

Key Takeaways

• Jacobs Solutions Inc. (J) offers a current dividend yield of 1.12%, paid quarterly at $0.36 per share.
• The company has increased dividends for 8 consecutive years, with recent 1-year growth of 11.48%.
• Payout ratio stands at 37.58%, indicating strong sustainability supported by earnings and free cash flow.
• Next ex-dividend date is May 22, 2026, with payment on June 19, 2026.
• Dividend profile is modest compared to high-yield sectors but competitive among engineering peers.

Dividend Overview

Jacobs Solutions Inc. (J), a leading provider of engineering and consulting services, maintains a modest dividend policy characterized by quarterly payments. The current annual dividend is $1.44 per share, delivering a yield of 1.12% based on recent stock prices around $128. Payments have been consistent, with the most recent quarterly dividend of $0.36 declared in late April 2026. This positions J as a dividend growth stock rather than a high-yield play, appealing to investors seeking reliable income with potential for future increases amid the company's stable cash flows from infrastructure and technology projects.

Dividend History and Growth

Jacobs Solutions has demonstrated consistent dividend growth over the past eight years, qualifying as a dividend challenger with no recent cuts. Quarterly payouts have risen steadily: from $0.21 in 2021, to $0.23 in 2022 (+9.5%), $0.26 in 2023 (+13%), $0.29 in 2024 (+11.5%), $0.32 in 2025 (+10.3%), and $0.36 in 2026 (+12.5%). The one-year growth rate is 11.48%, reflecting a long-term strategy of balancing shareholder returns with reinvestment in growth areas like critical infrastructure and climate solutions. This track record underscores a commitment to progressive payouts supported by operational performance.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of 37.58% leaving ample room for growth and resilience. Trailing earnings per share cover the $1.44 annual dividend more than 2.5 times, while recent free cash flow (FCF) of $0.61 billion in fiscal 2025 easily exceeds annual dividend obligations of approximately $173 million (based on ~120 million shares). Debt levels are manageable, with a debt-to-equity ratio of 0.65 and net debt-to-equity at 20.5%, supporting financial flexibility. These metrics indicate robust coverage even in variable project-based revenue cycles typical of the engineering sector.

Dividend Compared to Industry Peers

In the engineering and construction sector, J's 1.12% yield is competitive. Peers like ACM (AECOM) offer around 1.45%, KBR Inc. 1.76%, and STN (Stantec) 0.80%, while FLR (Fluor) pays no dividend. Sector averages hover around 0.8-1.5%, making J's profile average but bolstered by superior growth and lower payout ratio compared to higher-yielding peers.

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Is This Stock Attractive for Dividend Investors?

Jacobs Solutions Inc. (J) suits conservative dividend growth investors who prioritize sustainability over high yields. Its 1.12% yield, backed by an 8-year increase streak and a sub-40% payout ratio, appeals to those seeking reliable quarterly income with moderate appreciation potential from infrastructure megatrends. Long-term holders may value the coverage from FCF and earnings, providing a buffer against cyclical sector risks. However, income-focused investors chasing 4%+ yields might look elsewhere, as J emphasizes reinvestment for expansion over aggressive payouts. Balanced portfolios blending growth and modest dividends could find it suitable, though sector volatility warrants diversification. Overall, it fits patient investors comfortable with engineering project cycles.

Disclaimer

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