Jackson Financial Lifts Dividend 12.5% in Fifth Annual Increase

LANSING, MI – February 18, 2026 – Jackson Financial Inc. (NYSE: JXN) today announced a significant boost to its shareholder returns, declaring a first-quarter 2026 cash dividend of $0.90 per share of common stock. The move represents a 12.5% increase over the previous quarter and marks the company's fifth consecutive annual dividend hike since becoming an independent, publicly traded entity. The decision underscores a period of robust financial health and signals management's deep confidence in its long-term strategy within the competitive retirement services landscape.

The increased dividend will be payable on March 26, 2026, to shareholders of record at the close of business on March 16, 2026. Alongside the common stock dividend, the company also declared a cash dividend of $0.50 per depositary share for its Fixed-Rate Reset Noncumulative Perpetual Preferred Stock, Series A, payable on March 30, 2026.

A Pattern of Consistent Shareholder Returns

This latest increase is not an isolated event but rather the continuation of a deliberate and consistent strategy to reward shareholders. Since its debut as an independent company in late 2021, Jackson has methodically grown its dividend, establishing a reliable track record that is increasingly attractive to income-focused investors.

The dividend's journey began with a $0.50 per share payout in the fourth quarter of 2021. This was followed by increases to $0.55 per share throughout 2022, $0.62 in 2023, $0.70 in 2024, and $0.80 in 2025. The new $0.90 quarterly rate for 2026 solidifies a clear and compelling growth trajectory. This consistent growth, now culminating in a 14.3% year-over-year increase, demonstrates a firm commitment that goes beyond mere policy, reflecting a core tenet of the company's financial management.

For investors navigating a complex market, such predictability is a valuable commodity. The steady escalation in payouts positions Jackson as a dependable source of growing income, a key consideration for those planning for or living in retirement—the very demographic the company serves with its annuity products.

Underpinned by Robust Financial Performance

The confidence to approve a fifth consecutive dividend hike stems directly from Jackson's strong operational and financial performance. The announcement comes on the heels of the company's fourth-quarter 2025 earnings report, which comfortably surpassed analyst expectations. Jackson reported earnings per share (EPS) of $6.61, significantly outperforming the consensus estimate of $5.90. Revenue for the quarter also came in ahead of forecasts at $1.99 billion.

Beneath the headline numbers, the company's financial health is reinforced by strong fundamentals. Jackson has demonstrated impressive cash flow generation, accumulating nearly $1 billion in free cash flow for the twelve months ending September 30, 2025. This strong liquidity provides ample coverage for its dividend commitments and other capital return initiatives. Furthermore, the company's profitability metrics are trending positively, with an adjusted operating return on equity improving to 14% for the first nine months of 2025.

This financial strength is fueled by success in its core business. Jackson reported record sales of its Registered Index-Linked Annuities (RILAs), a key growth product, which reached $2.1 billion in the third quarter of 2025. This success in the marketplace provides the recurring revenue and earnings stability necessary to support a growing dividend.

A Competitive Stance in the Annuity Market

Within the broader financial services and insurance sector, Jackson's dividend strategy helps it stand out. When compared to peers like Prudential Financial (NYSE: PRU) and Lincoln Financial Group (NYSE: LNC), Jackson's approach presents a distinct profile. While Prudential may currently offer a higher absolute dividend yield, Jackson's aggressive dividend growth rate of 12.5% is a powerful signal of forward momentum and management's optimistic outlook.

Its dividend yield is competitive with that of Lincoln Financial Group, but the consistency and magnitude of its annual increases since going public set it apart. This positions Jackson favorably for investors who prioritize not just current income but the potential for that income stream to grow substantially over time. In an industry focused on long-term financial security, a rapidly growing dividend can be a more potent indicator of a company's future prospects than a static, albeit higher, current yield.

Following the dividend and earnings announcements, the market response was positive, with Jackson's stock (JXN) climbing in both regular and after-hours trading. This immediate investor approval suggests the market recognizes and rewards the company's blend of operational execution and shareholder-friendly capital policies.

Beyond Dividends: A Comprehensive Capital Allocation Strategy

The dividend increase is a key pillar, but only one part, of Jackson's broader capital allocation framework. The company has complemented its dividend policy with a significant share repurchase program, further enhancing shareholder value. In the third quarter of 2025 alone, Jackson returned $210 million to its common shareholders, a figure composed of $56 million in dividends and a substantial $154 million in share buybacks.

Over the first nine months of 2025, total capital returned to shareholders reached $657 million. This commitment was recently reinforced by the board's authorization of an additional $1 billion for its share repurchase program. This dual approach of providing direct cash returns via dividends while also increasing earnings per share and ownership stake through buybacks demonstrates a sophisticated and balanced strategy aimed at maximizing total shareholder return.

This comprehensive approach reflects management's belief that its stock is a valuable investment and underscores its discipline in deploying capital. By actively managing its share count and consistently raising its dividend, Jackson is executing a shareholder-friendly playbook that aligns management's actions with investor interests, building trust and reinforcing the investment thesis for the long term.