Insperity (NSP) DIvidends Date & History

Key Takeaways

• Insperity offers a forward dividend yield of approximately 6.75%, significantly higher than HR services peers like ADP (around 3%) and PAYX (around 3%).
• Quarterly dividend of $0.60 per share, equating to an annual payout of $2.40.
• 15 years of consecutive dividend increases, demonstrating commitment to shareholders.
• High payout ratio of 500% indicates the dividend is not currently covered by earnings, raising sustainability questions amid recent losses.
• Free cash flow has been negative in recent quarters, but the company maintains consistent payments from operational cash reserves.
• Attractive for income-focused investors seeking high yield, but with elevated risk due to cyclical HR business.

Dividend Overview

Insperity, Inc. (NSP), a leading provider of human resources and business solutions, maintains a robust quarterly dividend policy. The company currently pays $0.60 per share each quarter, totaling $2.40 annually, which translates to a forward dividend yield of 6.75% based on recent stock prices. The most recent ex-dividend date was March 6, 2026, with payment on March 20, 2026. This positions NSP as a high-yield stock rather than a traditional dividend growth aristocrat, appealing to income-oriented investors in the professional employer organization (PEO) space.

Dividend History and Growth

Insperity has a strong track record of dividend growth, with 15 consecutive years of increases as of 2026. The regular quarterly dividend has risen steadily from $0.40 per share in 2020 (annual $1.60) to $0.60 since mid-2024 (annual $2.40). Notable milestones include a special dividend of $2.00 in December 2021 alongside the regular payout. Recent history shows consistency: 2025 totaled $2.40, 2024 $2.37, and 2023 $2.23, reflecting annual adjustments amid business cycles in HR services. This growth underscores Insperity's long-term strategy to return capital to shareholders despite sector volatility.

Dividend Sustainability and Payout Ratio

Insperity's dividend sustainability faces scrutiny due to a trailing payout ratio of 500%, meaning dividends exceed earnings significantly. Trailing twelve-month profit margins are negative at -0.10%, with free cash flow also negative in recent quarters (e.g., -278 million TTM). High debt-to-equity ratio of 641.79% (most recent quarter) adds leverage risk. However, the company has sustained payments for decades, likely supported by cash reserves and operational cash flows from its PEO model. While cyclical downturns in staffing demand pressure coverage, historical resilience suggests short-term stability, though long-term cuts remain possible if profitability doesn't recover.

Dividend Compared to Industry Peers

In the human resources and employment services industry, Insperity's 6.75% yield stands out as high relative to peers. ADP offers about 2.98%, PAYX around 3.43%, and TNET approximately 3-5%, with sector averages closer to 2-4%. This premium yield compensates for higher volatility in Insperity's worksite employee model versus peers' more stable payroll processing. Investors gain superior income potential, but with greater exposure to economic sensitivity.

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Is This Stock Attractive for Dividend Investors?

Insperity appeals to yield-seeking dividend investors comfortable with elevated risk, particularly those prioritizing high current income over pristine safety margins. Its 6.75% yield and 15-year growth streak attract income-focused portfolios in a low-rate environment, outperforming conservative dividend growth names like ADP or PAYX. However, the unsustainable payout ratio and negative earnings coverage make it less suitable for conservative or total-return investors wary of cuts during economic slowdowns. Long-term holders betting on HR sector recovery and cyclical upturns may find value, but volatility suits tactical income strategies rather than buy-and-hold core positions. Balance high reward with business cycle awareness.

Disclaimer

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