Jackson Announces Third Quarter 2024 Common and Preferred Stock Dividends and $750 Million Increase to Common Share Repurchase Authorization

Rhea-AI Summary

Jackson Financial Inc. (NYSE: JXN) has announced key financial decisions for Q3 2024. The Board of Directors declared a cash dividend of $0.70 per share of common stock, payable on September 19, 2024, to shareholders of record as of September 5, 2024. Additionally, a cash dividend of $0.50 per depositary share for the preferred stock (NYSE: JXN PR A) will be paid on September 30, 2024.

Notably, Jackson's Board has authorized a $750 million increase to the existing common share repurchase program, adding to the remaining $95 million authorization as of June 30, 2024. This expansion demonstrates the company's commitment to returning value to shareholders through strategic capital allocation.

Positive

• Declared quarterly dividend of $0.70 per common share
• Authorized $750 million increase to share repurchase program
• Total share repurchase authorization now stands at $845 million

Negative

• None.

Insights

Financial Analyst

Jackson Financial's announcement is significantly positive for shareholders. The $0.70 quarterly dividend represents a robust yield, signaling confidence in the company's financial health. More notably, the $750 million increase in share repurchase authorization is substantial, potentially boosting earnings per share and stock price.

This move suggests management believes the stock is undervalued. With only $95 million remaining from the previous authorization, this 789% increase demonstrates a strong commitment to returning capital to shareholders. The flexibility in repurchase methods allows for strategic buying opportunities, which could enhance long-term shareholder value.

Investors should view this as a sign of financial strength and positive future outlook, though it's important to monitor how this impacts the company's capital position and growth investments.

Market Research Analyst

Jackson's dividend and buyback announcements send a powerful market signal. In the current economic climate, where many companies are cutting costs, Jackson's aggressive capital return strategy stands out. This could attract value investors and potentially lead to increased demand for the stock.

The preferred stock dividend maintains stability for those investors, balancing the company's capital structure. The market may interpret this as Jackson having strong cash flows and a solid financial position. However, investors should consider:

• How this compares to industry peers' capital return policies
• The impact on Jackson's financial flexibility for future opportunities
• Whether this signals internal growth prospects

Overall, this move positions Jackson as a shareholder-friendly company, which could improve its market perception and valuation multiples.

LANSING, Mich.--(BUSINESS WIRE)-- Jackson Financial Inc.¹ (Jackson®) today announced its Board of Directors has declared a cash dividend of $0.70 per share of common stock (NYSE: JXN) for the third quarter of 2024. The dividend on the common stock will be payable on September 19, 2024, to common shareholders of record at the close of business on September 5, 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 September 30, 2024, to depositary shareholders of record at the close of business on September 5, 2024.

In addition, Jackson’s Board has authorized an increase of $750 million to the Company’s existing common share repurchase authorization, which adds to the remaining authorization of $95 million as of June 30, 2024.

Repurchases under the authorization may be made through open market purchases, unsolicited or solicited privately negotiated transactions, or in such other manner and at such times as management determines to be in compliance with applicable legal requirements. The number of common shares to be repurchased and the timing of such transactions will depend on a variety of factors, including market conditions. The Company reserves the right to amend or terminate the authorization at any time in its discretion.

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.

*SQM (Service Quality Measurement Group) Contact Center Awards Program for 2004 and 2006-2023, 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).

WEBSITE INFORMATION

Visit investors.jackson.com to view information regarding Jackson Financial Inc. We routinely use our investor relations website as a primary channel for disclosing key information to our investors, some of which may contain material and previously non-public information. We may also use social media channels to communicate with our investors and the public about our Company and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels is not incorporated by reference into and is not part of this document.

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, 2023, as filed with the U.S. Securities and Exchange Commission (“SEC”) on February 28, 2024, and elsewhere in Jackson Financial Inc.’s filings with the SEC. 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.

¹Jackson 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/20240807281281/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 Jackson Financial's Q3 2024 common stock dividend?

Jackson Financial (JXN) declared a cash dividend of $0.70 per share of common stock for the third quarter of 2024, payable on September 19, 2024, to shareholders of record as of September 5, 2024.

How much did Jackson increase its share repurchase authorization?

Jackson Financial (JXN) increased its share repurchase authorization by $750 million, adding to the remaining $95 million as of June 30, 2024, bringing the total authorization to $845 million.

When will Jackson Financial pay its preferred stock dividend for Q3 2024?

Jackson Financial (JXN) will pay a cash dividend of $0.50 per depositary share for its preferred stock on September 30, 2024, to shareholders of record as of September 5, 2024.

What is the ticker symbol for Jackson Financial's preferred stock?

The ticker symbol for Jackson Financial's Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A, is NYSE: JXN PR A.