Jack Henry & Associates (JKHY) DIvidends Date & History

Key Takeaways

• Dividend yield: Jack Henry & Associates (JKHY) currently offers a modest dividend yield of roughly 1.5%, with a quarterly payout of $0.61 per share (about $2.44 annually).
• Dividend growth: The company has increased its dividend for 35 consecutive years, backed by a mid-single-digit to high-single-digit annual growth rate.
• Sustainability: A payout ratio near 35% of earnings and roughly 24% of cash flow indicates the dividend is comfortably covered with room to grow.
• Investor profile: JKHY is best suited to dividend growth investors seeking dependable, steadily rising income rather than high current yield.
• Payment schedule: Dividends are paid quarterly, with the most recent ex-dividend date on September 4, 2026, and payment on September 23, 2026.

Dividend Overview

Jack Henry & Associates, Inc. is a financial technology company that provides software and payment processing solutions to banks and credit unions across the United States. Despite operating in a growth-oriented software sector, the company has maintained a disciplined and reliable dividend program for decades. JKHY pays a quarterly dividend of $0.61 per share, which translates to approximately $2.44 per share on an annualized basis. At recent trading levels, this equates to a dividend yield of roughly 1.5%.

Jack Henry is best characterized as a dividend growth stock rather than a high-yield stock. Its yield is modest compared with traditional income investments, but its long record of consistent annual increases makes it a notable name among dividend investors who prioritize reliability and compounding growth over immediate income.

Dividend History and Growth

Jack Henry has paid a dividend since 1990 and has raised its payout every year for 35 consecutive years, placing it among a select group of companies with multi-decade dividend growth streaks. The dividend has grown from an annualized total of about $1.00 per share in 2016 to roughly $2.44 today, reflecting a compound annual growth rate (CAGR) of approximately 9% over that period. Over the past five years, the dividend has increased at an average rate of about 6% annually, while the ten-year average is closer to 9%.

The company's most recent increase, announced in February 2026, raised the quarterly dividend by 6% to $0.61 per share. This pattern of steady, predictable annual raises underscores a long-term commitment to returning capital to shareholders while continuing to reinvest in the business.

Dividend Sustainability and Payout Ratio

Jack Henry's dividend appears well supported by its earnings and cash generation. The payout ratio—the portion of earnings paid out as dividends—stands at roughly 35%, a conservative level that leaves ample room for future increases and provides a buffer during periods of softer profitability. When measured against free cash flow (FCF), the cash a company generates after funding operations and capital expenditures, the payout ratio is even lower, at approximately 24%.

The company also maintains a strong balance sheet, with modest debt levels relative to its earnings and cash flow. This financial stability, combined with a low payout ratio, suggests that the dividend is sustainable and that Jack Henry retains significant flexibility to continue growing its payout over time.

Dividend Compared to Industry Peers

Within the financial technology and payments space, Jack Henry's dividend profile stands out for its longevity rather than its size. Its roughly 1.5% yield is lower than that of larger, more diversified processors such as Fidelity National Information Services (FIS), which typically offers a higher yield, but Jack Henry's dividend is notable because many pure-play software and payments peers—such as Fiserv (FI)—do not pay a meaningful dividend at all.

Compared with the broader sector, JKHY's yield is modest, but its 35-year streak of consecutive increases is among the strongest in its industry. This positions Jack Henry as a lower-yield, higher-quality alternative for investors who value consistency and growth potential over maximum current income.

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Is This Stock Attractive for Dividend Investors?

Jack Henry & Associates is likely to appeal most to dividend growth investors and long-term, total-return-focused investors. With a modest yield around 1.5%, the stock does not generate the immediate income that high-yield or income-focused investors often seek. However, its 35-year streak of consecutive dividend increases, conservative payout ratio, and strong free cash flow make it a candidate for those building a portfolio of reliable dividend growers.

Conservative investors may also appreciate the company's stable, recurring revenue base serving banks and credit unions, which tends to be less cyclical than many other industries. That said, the modest yield means investors prioritizing current income may find better alternatives elsewhere. As with any equity, dividend payments are never guaranteed and depend on the company's ongoing financial performance and board decisions.

Disclaimer

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