JACK HENRY & ASSOCIATES INC (NASDAQ:JKHY) stands out as a compelling choice for dividend investors, according to our Best Dividend Stocks screen. The company combines a solid dividend profile with strong profitability and financial health, making it a well-rounded candidate for income-focused portfolios.
Dividend Strength
- Dividend Yield: JKHY offers a yield of 1.28%, which is reasonable compared to its industry peers, though slightly below the S&P 500 average.
- Dividend Growth: The company has increased its dividend by an average of 6.79% annually over the past years, demonstrating a commitment to rewarding shareholders.
- Track Record: JKHY has paid dividends consistently for at least 10 years without reductions, indicating reliability.
- Payout Ratio: At 37.87%, the payout ratio is sustainable, leaving ample room for reinvestment and future dividend hikes.
Profitability & Financial Health
- Strong Profitability: With a ChartMill Profitability Rating of 8/10, JKHY excels in margins and returns, including an 18.50% Profit Margin and 21.08% Return on Equity.
- Financial Stability: The company’s ChartMill Health Rating of 8/10 reflects a robust balance sheet, low debt (Debt/Equity of 0.04), and strong liquidity metrics.
- Growth Prospects: Earnings are expected to grow by 12.69% annually, supporting future dividend increases.
While JKHY’s valuation appears elevated with a P/E of 30.26, its high-quality fundamentals justify a premium for long-term investors.
For a deeper dive, review the full fundamental report on JKHY.
Our Best Dividend Stocks screener provides more high-quality dividend ideas.
Disclaimer
This is not investment advice. Conduct your own research before making any investment decisions.
