Marsh Raises Quarterly Dividend 10.0% to $0.99

Marsh & McLennan Companies, Inc. raised its quarterly dividend 10.0% to $0.99 per share from $0.90. The next ex-dividend date is October 1, 2026, and the new rate brings the annual dividend per share to $3.96.

Why the dividend changed

Marsh did not give a detailed dividend-specific rationale. The increase was disclosed alongside second-quarter results showing continued revenue and adjusted earnings growth, indicating that the board acted against a backdrop of expanding operations rather than a split, merger or spinoff. Second-quarter revenue increased 6%, underlying revenue increased 5%, and adjusted earnings per share increased 9%, according to the company's results release filed with the SEC.

Chief Executive John Doyle said the first-half performance reflected “strong demand for Marsh's expertise and capabilities.” Second-quarter operating income increased 4%, while adjusted operating income increased 5%. The distinction matters because Marsh recorded restructuring, acquisition-related and litigation expenses that reduced reported results relative to its adjusted figures, according to the same release.

The business mix also supported the increase. Risk and Insurance Services revenue increased 4%, including 3% underlying growth, while Consulting revenue increased 10%, including 8% underlying growth. That combination provided growth from both of Marsh's reporting segments, although the consulting businesses expanded faster during the quarter.

Capital returns were not limited to the dividend. Marsh repurchased approximately 4.5 million shares for $750 million during the second quarter and 8.7 million shares for $1.5 billion during the first half, the results release showed. The company is therefore balancing a higher recurring dividend with share repurchases, acquisitions and investment in its operations.

Dividend track record

The latest payment history shows a clear step-up pattern. The July 23, 2026, ex-dividend payment was $0.99, following payments of $0.90 with ex-dividend dates of April 9, 2026, and January 29, 2026. The preceding increase took the payment from $0.815 to $0.90 during 2025, so the latest action continues a sequence of annual increases rather than reversing a temporary reduction.

Full-year totals tell the same story. The annual distribution rose from $1.84 in 2020 to $2.00 in 2021, $2.25 in 2022, $2.60 in 2023, $3.05 in 2024 and $3.43 in 2025. Those changes represented increases of 8.7%, 12.5%, 15.6%, 17.3% and 12.5%, respectively. Dividend growth has therefore been sustained, although its pace has varied from year to year.

Marsh has increased its dividend for 16 consecutive years, and the dividend grew 13.3% on a five-year annualized basis. The last annual cut occurred in 2005, placing the current run of increases within a longer record that has included one material reset.

Is the dividend covered?

The dividend consumes 44% of earnings. That payout ratio leaves earnings coverage for the distribution while preserving capacity within reported profit for repurchases, acquisitions, debt obligations and operating investment. It also means the latest increase did not push the dividend close to absorbing all earnings.

SmarterDividends rates the dividend A, with a safety score of 85. That denotes very safe (score 80-100) and reflects the moderate earnings payout, the 16-year growth streak and the consistency of recent payments. The grade describes present coverage and payment characteristics, not a guarantee of future declarations.

Yield and valuation

At a share price of $169.73, the $3.96 annual dividend produces a 2.32% forward yield. That is below the Financial Services sector median forward yield of 5.70%, so Marsh offers less current dividend income than the median sector company despite its record of dividend growth.

The company has a market value of $81.0 billion, and its one-year share-price return fell 1.8%. SmarterDividends estimates fair value at $180.14 and assigns a fair valuation verdict, with 3% upside to that estimate. The valuation assessment and below-median yield frame the dividend primarily as a growing income stream rather than a high-current-yield security.

What to watch

The immediate calendar item is the October 1, 2026, ex-dividend date. Subsequent quarterly results will show whether the revenue and adjusted earnings growth reported for the second quarter continues to support the higher recurring payment, alongside Marsh's substantial share-repurchase program.

Investors can also track execution of Thrive, the company's three-year program focused on growth, operational efficiency, data and artificial intelligence. Marsh has said it expects approximately $400 million in annualized savings from the program, according to its 2026 proxy statement.

A pending transaction is another capital-allocation item. Mercer agreed to acquire private-markets specialist AltamarCAM, with closing expected in the second half of 2026 subject to customary conditions. AltamarCAM manages €20 billion, and Marsh intends to integrate it into Mercer's private-markets platform, according to the transaction announcement. Progress on that deal, Thrive and repurchases will provide context for how the company allocates capital around its higher dividend.