Jack Henry & Associates, Inc. (NASDAQ: JKHY) has declared a quarterly dividend of $0.61 per share, marking a 5.2% increase from its previous dividend of $0.58. The announcement was made on February 9, 2024, and shareholders recorded as of March 5, 2024, will receive this payment on March 25, 2024. This increase reflects the company’s commitment to returning value to its investors and continues its impressive track record of raising dividends for the last 35 consecutive years.
The new dividend represents an annualized payout of $2.32 per share, yielding approximately 1.4%. With a payout ratio of 36.1%, the dividend is well-supported by the company’s earnings. Analysts project that Jack Henry & Associates will earn $6.26 per share next year, which indicates that the anticipated future payout ratio will be around 37.1%.
Despite the positive dividend news, shares of Jack Henry & Associates traded down by 1.0% during mid-day trading on the announcement day, reaching a price of $171.56. Trading volume was notably higher, with 1,511,820 shares exchanged compared to the average volume of 864,220. Over the past year, the stock has fluctuated between a low of $144.12 and a high of $196.00.
Jack Henry & Associates maintains a robust financial profile, evidenced by a debt-to-equity ratio of 0.01, a current ratio of 1.54, and a quick ratio of 1.49. The company, with a market capitalization of $12.42 billion, showcases a price-to-earnings (P/E) ratio of 24.65 and a P/E/G ratio of 2.66. Its fifty-day moving average stands at $183.37, while the 200-day moving average is $168.29.
About Jack Henry & Associates
Founded in 1976 and headquartered in Monett, Missouri, Jack Henry & Associates is a leading provider of technology solutions and payment processing services tailored for the financial services industry. The company develops and supports a comprehensive suite of software and services aimed at helping banks, credit unions, and other financial institutions enhance operational efficiency, improve customer engagement, and manage risk effectively. Its core processing platforms deliver essential functionalities such as account processing, general ledger management, deposit operations, and loan servicing.
As Jack Henry & Associates continues to grow and innovate within the financial technology sector, its consistent dividend increases highlight its commitment to shareholders and its robust earnings potential. Investors will be keen to observe how the company’s performance unfolds in the coming quarters, especially with the anticipated rise in earnings.
