Exploring the Dividend Performance and Sustainability of Jackson Financial Inc (JXN, Financial)
Jackson Financial Inc (JXN) recently announced a dividend of $0.7 per share, payable on 2024-06-20, with the ex-dividend date set for 2024-06-06. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Jackson Financial Inc's dividend performance and assess its sustainability.
What Does Jackson Financial Inc Do?
Jackson Financial Inc helps Americans grow and protect their retirement savings and income to enable them to pursue financial freedom for life. Its retail products offerings comprise annuities, designed to help retail investors save for and live in retirement. Its diverse suite of annuities includes variable, fixed index, and fixed annuities. It manages the business through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks and Corporate and Other segments.
A Glimpse at Jackson Financial Inc's Dividend History
Jackson Financial Inc has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Jackson Financial Inc's Dividend Yield and Growth
As of today, Jackson Financial Inc currently has a 12-month trailing dividend yield of 3.42% and a 12-month forward dividend yield of 3.74%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Jackson Financial Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Jackson Financial Inc stock as of today is approximately 3.42%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-03-31, Jackson Financial Inc's dividend payout ratio is 0.04. Jackson Financial Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Jackson Financial Inc's profitability 4 out of 10 as of 2024-03-31, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Jackson Financial Inc's growth rank of 4 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable. Revenue is the lifeblood of any company, and Jackson Financial Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Jackson Financial Inc's revenue has decreased by approximately -7.60% per year on average, a rate that underperforms approximately 82.11% of global competitors.
Conclusion
Considering Jackson Financial Inc's dividend payments, growth rate, payout ratio, profitability, and growth metrics, investors should closely monitor these factors to make informed decisions. For those seeking high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
