Jacobs dividend: payment and cash coverage
MyStockButler's October 2026 analysis: Jacobs' current quarterly dividend is $0.36, and its base case raises dividends from $1.56 to $1.88 per share. In FY2025, Jacobs paid shareholders $907.2 million against free cash flow of $607.5 million, so distributions were not covered by that year's internal cash generation.
How much does Jacobs pay its shareholders?
Dividends rise from $1.56 to $1.88 per share in the base case. The bear freezes the current annualized rate at $1.44, while the bull reaches $2.00. The current quarterly dividend is $0.36 after a 12.5% increase, supporting continued growth but not rapid growth. The restraint reflects FY2025 payouts equal to 149.3% of free cash flow and management’s leverage targets.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| Revenue | 12,029,783 | 11,500,941 | 10,851,420 | 9,783,074 | |
| Revenue growth (calculated) | 4.6% | 6.0% | 10.9% | ||
| EPS, diluted | 2.58 | 4.79 | 3.05 | 2.74 | |
| Dividend per share | 0.96 | 1.16 | 1.04 | 0.92 | 0.84 |
What this means. The earlier years were changed to reflect the Amentum separation, so comparing 2021 with later years is not comparing the same business.
How much would Jacobs's dividend pay you?
$10,000 invested in Jacobs at its 1.0% dividend yield (our report of October 24, 2026) pays $100.00 in the first year, before tax. If its dividend per share keeps changing 11.3% a year, as it did from Oct 2021 to Sep 2025, and the dividends are reinvested, year 10 pays $303.12, with $1,834.09 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Jacobs' dividend covered by its cash?
Shareholder payments were more demanding. Jacobs returned $2.6 billion through dividends and buybacks across five years. In FY2025, it paid shareholders $907.2 million against free cash flow of $607.5 million. After $14.2 million paid to minority owners, the shortfall reached $313.9 million. Free cash flow is operating cash after property spending, not a limit on borrowing, so Jacobs could fund the difference from its balance sheet. But the distributions were not covered by that year’s internal cash generation.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Oct 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 607,472 | 717,681 | 578,506 | 129,478 | |
| − Dividends paid | 153,027 | 142,779 | 128,420 | 115,948 | 107,188 |
| − Share buybacks | 754,130 | 402,668 | 265,714 | 281,926 | 274,948 |
| Paid out, % of free cash flow | 149.3% | 76.0% | 68.1% | 307.3% |
What this means. The company's own net debt is higher because it subtracts only cash, while our count also subtracts its marketable Amentum shares.
What could change Jacobs' dividend?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 977 (803 / 1,065) | 1,059 (785 / 1,206) | 1,149 (780 / 1,371) |
| Shares (millions) | 116 (117 / 114) | 114 (117 / 112) | 113 (117 / 109) |
| Dividends per share | 1.56 (1.44 / 1.60) | 1.72 (1.44 / 1.80) | 1.88 (1.44 / 2.00) |
| Price to earnings | 18.00 (16.00 / 20.00) | 18.50 (14.00 / 22.00) | 19.00 (12.00 / 24.00) |
What is Jacobs' dividend yield against its price?
Revenue grew across the reported years, and operating margin improved by FY2025, but diluted EPS fell in FY2025. The valuation rests on an earnings recovery: trailing P/E is 48.4x versus 17.6x next-twelve-month. Jacobs’ FY2025 real free cash flow, after capital spending and stock pay, is the cash test; shareholder payouts exceeded it. Buyback yield was 4.4% alongside a 1.0% dividend yield.
The endpoint range runs from $79.80 to $302.37. Today’s price is $145.06. The base case carries the highest probability at 55%. The bear case has 27%, while the bull case has 18%.