Jackson Announces 13% Increase to First Quarter 2024 Common Stock Dividend

Rhea-AI Summary

Jackson Financial Inc. (NYSE: JXN) declares a cash dividend of $0.70 per common stock share, a 13% increase from the previous year. Additionally, a $0.50 dividend per depositary share (NYSE: JXN PR A) is declared. Both dividends are payable in March and April 2024, respectively.

Insights

Financial Analyst

The declaration of a cash dividend increase by Jackson Financial Inc. is a strong signal to the market, indicating the company's confidence in its financial stability and profitability. A 13% increase in dividend payout is significant and exceeds the average annual dividend growth rate for the financial sector, which typically hovers around the 5-6% mark. This action may also suggest that the company's management is prioritizing shareholder returns over reinvesting a larger portion of profits back into the company, which could be interpreted in several ways.

From a financial perspective, the increased dividend could attract income-focused investors, potentially increasing the demand for the stock. However, it's imperative to analyze the company's payout ratio to ensure that dividends are sustainable and not compromising the firm's ability to invest in future growth opportunities. Additionally, the market will likely monitor subsequent earnings reports closely to confirm that the increased dividends are supported by robust earnings growth.

Market Research Analyst

When a company like Jackson Financial Inc. announces an increase in dividends, it not only affects shareholder sentiment but also impacts the competitive landscape. Competitors will be under pressure to evaluate their own dividend policies to ensure they remain attractive to shareholders. Moreover, the market will often view such an increase as a benchmark for the sector's performance.

The timing of the dividend is also noteworthy, as it comes at the beginning of the financial year. This could be a strategic move to set a positive tone for the year ahead. Market analysts will be keen to assess whether this increase is a precursor to strong financial performance across the sector or specific to Jackson's operational efficiencies and strategic initiatives.

Economist

Dividend policy decisions, such as the one made by Jackson Financial Inc., have broader economic implications. They can reflect the company's outlook on the economy, indicating that management may believe economic conditions will remain favorable, supporting continued profitability. A robust dividend increase can also be seen as a signal of economic strength within the industry, potentially leading to increased consumer and investor confidence.

However, it's crucial to consider the macroeconomic context. If the economy faces headwinds such as rising interest rates or inflationary pressures, these factors could affect the company's future ability to maintain or increase dividends. Stakeholders should view such announcements with cautious optimism, considering the larger economic environment.

LANSING, Mich.--(BUSINESS WIRE)-- Jackson Financial Inc.ⁱ (Jackson®) announced its Board of Directors has declared a cash dividend of $0.70 per share of common stock (NYSE: JXN) for the first quarter of 2024, reflecting a nearly 13% increase over the prior year dividend level. The dividend on the common stock will be payable on March 21, 2024, to shareholders of record at the close of business on March 12, 2024.

The Company also announced the declaration of a cash dividend of $0.50 per depositary share (NYSE: JXN PR A), each representing a 1/1,000th interest in a share of Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A. The dividend will be payable on April 1, 2024, to shareholders of record at the close of business on March 12, 2024.

ABOUT JACKSON

Jackson® (NYSE: JXN) is committed to helping clarify the complexity of retirement planning—for financial professionals and their clients. Through our range of annuity products, financial know-how, history of award-winning service* and streamlined experiences, we strive to reduce the confusion that complicates retirement planning. We take a balanced, long-term approach to responsibly serving all our stakeholders, including customers, shareholders, distribution partners, employees, regulators and community partners. We believe by providing clarity for all today, we can help drive better outcomes for tomorrow. For more information, visit www.jackson.com.

Visit investors.jackson.com to view information regarding Jackson Financial Inc. We use this website as a primary channel for disclosing key information to our investors, some of which may contain material previously non-public information.

*SQM (Service Quality Measurement Group) Contact Center Awards Program for 2004 and 2006-2022, for the financial services industry (To achieve world-class certification, 80% or more of call-center customers surveyed must have rated their experience as very satisfied, the highest rating possible).

Jackson® is the marketing name for Jackson Financial Inc., Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York).

SAFE HARBOR STATEMENT

The information in this press release contains forward-looking statements about future events and circumstances and their effects upon revenues, expenses and business opportunities. Generally speaking, any statement in this release not based upon historical fact is a forward-looking statement. Forward-looking statements can also be identified by the use of forward-looking or conditional words, such as “could,” “should,” “can,” “continue,” “estimate,” “forecast,” “intend,” “look,” “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “remain,” “confident” and “commit” or similar expressions. In particular, statements regarding plans, strategies, prospects, targets and expectations regarding the business and industry are forward-looking statements. They reflect expectations, are not guarantees of performance and speak only as of the dates the statements are made. We caution investors that these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those projected, expressed or implied. Factors that could cause actual results to differ materially from those in the forward-looking statements include those reflected in Part I, Item 1A. Risk Factors and Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on March 1, 2023, (the "2022 Annual Report"), as Part II, Item 7 was recast to reflect the adoption of the Long Duration Targeted Improvements accounting principle in our Current Report on Form 8-K filed May 10, 2023, and elsewhere in Jackson Financial Inc.’s filings with the U.S. Securities and Exchange Commission. Except as required by law, Jackson Financial Inc. does not undertake to update such forward-looking statements. You should not rely unduly on forward-looking statements.

ⁱJackson Financial Inc. is a U.S. holding company and the direct parent of Jackson Holdings LLC (JHLLC). The wholly-owned direct and indirect subsidiaries of JHLLC include Jackson National Life Insurance Company, Brooke Life Insurance Company, PPM America, Inc. and Jackson National Asset Management, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240221363161/en/

Media Contact:

Patrick Rich

patrick.rich@jackson.com

Investor Relations Contact:

Andrew Campbell

andrew.campbell@jackson.com

Source: Jackson Financial Inc.

FAQ

What is the dividend per share declared by Jackson Financial Inc. (NYSE: JXN) for the first quarter of 2024?

Jackson Financial Inc. (NYSE: JXN) declared a cash dividend of $0.70 per common stock share for the first quarter of 2024, a 13% increase over the prior year.

When will the dividend for common stock shareholders be payable?

The dividend for common stock shareholders will be payable on March 21, 2024.

What is the dividend per depositary share declared by Jackson Financial Inc. (NYSE: JXN PR A) for the first quarter of 2024?

Jackson Financial Inc. (NYSE: JXN) declared a cash dividend of $0.50 per depositary share (NYSE: JXN PR A) for the first quarter of 2024.

When will the dividend for depositary share shareholders be payable?

The dividend for depositary share shareholders will be payable on April 1, 2024.