FactSet Raises Quarterly Dividend 5.5% to $1.16

FactSet Research Systems Inc. raised its quarterly dividend 5.5% to $1.16 a share from $1.10. The annual dividend is $4.64 a share, and the first payment at the higher rate traded ex-dividend on May 29, 2026. Another $1.16 payment traded ex-dividend on August 31, 2026.

Why the dividend changed

FactSet did not tie the increase to a single financial target. The company described it as part of its continuing commitment to return value to shareholders. FactSet said fiscal 2026 marked its 27th consecutive fiscal year of dividend increases on a stock split-adjusted basis, one year longer than the completed streak reflected in the payment history. FactSet’s dividend announcement supports the longer company-reported figure.

The operating backdrop before the decision included stronger revenue and cash generation, offset by pressure on reported earnings and margins. In the fiscal second quarter, revenue rose 7.1% to $611.0 million and free cash flow increased 23.6% to $185.7 million. GAAP earnings per share fell 4.5% as higher operating expenses and an impairment charge outweighed revenue growth and a lower share count. Management raised its annual growth outlook while emphasizing targeted investment and operating leverage. FactSet’s second-quarter results provide the period’s financial context.

Results reported after the increase showed that revenue and cash flow continued to grow. Fiscal third-quarter revenue rose 6.4% to $622.9 million, while free cash flow increased 11.1% to $254.0 million. Adjusted earnings per share rose 6.1%, though GAAP operating margin declined to 26.7% because of higher employee compensation and other expenses. FactSet also returned $243.4 million through dividends and share repurchases during the quarter, showing that the dividend remained one component of a broader capital-return program. The third-quarter earnings release filed with the SEC details those results.

Dividend track record

The payment history shows a regular pattern of annual increases rather than irregular distributions. The quarterly rate was $1.04 for the November 29, 2024, and February 28, 2025, ex-dividend dates. It rose to $1.10 beginning with the May 30, 2025, ex-dividend date and remained there through February 27, 2026, before advancing to $1.16.

Full-year dividends increased from $3.03 a share in 2020 to $3.23 in 2021, $3.49 in 2022, $3.83 in 2023, $4.10 in 2024 and $4.34 in 2025. Annual growth accelerated from 6.6% in 2021 to 9.7% in 2023, then moderated to 7.0% in 2024 and 5.9% in 2025. The current 5.5% increase continues that more measured pace. Dividend growth has averaged 7.4% annually over five years.

Is the dividend covered?

The dividend consumes 29% of earnings. That payout ratio leaves most reported earnings outside the dividend commitment, providing capacity to fund operations, investment and other capital returns while maintaining the quarterly payment.

SmarterDividends rates the dividend A with a safety score of 91. The grade means very safe within the 80-100 scoring range and indicates that the present payout burden and other safety measures provide a substantial coverage buffer. The company’s recent free-cash-flow growth adds operating context, although quarterly cash flow can vary with working capital and investment timing.

Yield and valuation

At a share price of $273.25, FactSet’s $4.64 annual dividend produces a 1.66% forward yield. That stands below the Financial Services sector median forward yield of 5.70%, making the shares a lower-yielding income source than the sector benchmark despite the extended growth record.

SmarterDividends estimates fair value at $335.73 and classifies the shares as undervalued, representing 18% upside to that estimate. The fair-value comparison is a valuation measure rather than a forecast of the share price or dividend.

What to watch

FactSet’s scheduled fourth-quarter webcast on September 30, 2026, is the next operating update. The company also has an investor day scheduled for November 10, 2026. FactSet’s investor-events calendar lists both events.

The principal financial markers are revenue growth, operating-margin trends, cash generation and the balance between dividends and repurchases. FactSet reaffirmed fiscal 2026 guidance after its third quarter, including GAAP revenue of $2,450 million to $2,470 million, GAAP diluted earnings per share of $14.85 to $15.35 and adjusted diluted earnings per share of $17.25 to $17.75. The next dividend declaration will show whether the board maintains the $1.16 quarterly rate after two payments at that level.