Maximus Boosts Dividend 10%, Signals Confidence in Stable Growth

TYSONS, Va. – January 06, 2026 – Maximus (NYSE: MMS), a prominent provider of government services, today announced a significant 10% increase in its quarterly cash dividend, raising the payout to $0.33 per share from the previous $0.30. The move, approved by the company's Board of Directors, serves as a strong signal of management's confidence in its financial stability and future earnings potential.

The increased dividend is payable on March 2, 2026, to shareholders of record on February 13, 2026. This decision aligns with the company's stated commitment to delivering value to its investors, driven by consistent operational performance.

“Our disciplined capital deployment strategy includes a quarterly dividend that we intend to increase over time as our earnings grow,” said Bruce Caswell, President and Chief Executive Officer of Maximus. “This dividend increase reflects our recent earnings growth, as we've successfully delivered critical government services while navigating changing government priorities.”

A Cornerstone of Shareholder Value

The dividend hike is not an isolated event but rather the latest step in a long-standing tradition of rewarding shareholders. Maximus has now maintained dividend payments for 21 consecutive years, establishing itself as a reliable source of income for investors. The new quarterly rate brings the annualized dividend to $1.32 per share, up from $1.20, resulting in a forward yield of approximately 1.5% based on recent trading.

What makes this increase particularly noteworthy for investors is its sustainability. The company's dividend is backed by a conservative payout ratio, which financial analyses place in the range of 18% to 22% of adjusted earnings. This indicates that Maximus distributes a relatively small portion of its profits as dividends, retaining the majority of its earnings for reinvestment into the business, strategic initiatives, and maintaining a strong balance sheet. This conservative approach not only enhances the safety of the current dividend but also provides substantial room for future increases, a key aspect of the company's long-term value proposition.

This disciplined capital allocation is a core tenet of the company's financial strategy. By balancing shareholder returns with internal investment, Maximus aims to foster sustainable growth that can support both its operational needs and its commitment to its investors over the long term.

The Financial Bedrock Supporting the Increase

The confidence expressed by the leadership team is firmly rooted in the company's recent financial performance. For its fiscal year that concluded on September 30, 2025, Maximus reported robust results, including an adjusted diluted earnings per share (EPS) of $7.36 on the back of a 2.4% increase in annual revenue. In its fourth quarter alone, the firm posted an EPS of $1.62 and revenue of $1.32 billion.

Looking ahead, Maximus has issued optimistic guidance for fiscal year 2026, with a projected EPS range of $7.95 to $8.25. This forecast suggests that management anticipates continued momentum and profitability, providing a solid financial foundation for the enhanced dividend payout.

The market has taken note of this steady performance. Analyst sentiment has been largely positive, with firms like Raymond James recently increasing their price target on Maximus stock to $95 and maintaining an "Outperform" rating, pointing specifically to anticipated margin growth as a key catalyst. This external validation, combined with internal projections, paints a picture of a company on solid financial footing, capable of weathering economic cycles while continuing to generate and distribute profits.

A Competitive Stance in the Government Services Arena

Within the competitive landscape of government contracting, Maximus's dividend policy helps it stand out. A comparison with its peers reveals a thoughtful and strategic approach to capital returns. While some competitors like CACI International do not currently offer a regular cash dividend, Maximus aligns with firms such as Leidos and Booz Allen Hamilton in providing quarterly payouts.

However, key differences emerge in the details. Maximus's dividend yield of approximately 1.5% is competitive within the sector, nestled between Leidos's 1.05% and Booz Allen Hamilton's 1.63%. More importantly, its lower payout ratio compared to these peers suggests a more prudent financial posture. While others distribute a larger percentage of their earnings, Maximus's strategy of retaining more capital could provide greater resilience and flexibility for future growth opportunities or to navigate unforeseen market challenges. This balance makes it an attractive option for investors seeking both income and stability.

Thriving by Navigating Shifting Government Priorities

CEO Bruce Caswell's reference to "navigating changing government priorities" is central to understanding the engine behind Maximus's success. The company has demonstrated a keen ability to align its services with the evolving needs of public sector clients at the federal, state, and local levels. Its focus on providing tech-enabled services and innovative business process management solutions places it at the heart of several key government initiatives.

One major trend is the ongoing digital transformation and modernization of government agencies. Public entities are under pressure to update legacy IT systems, adopt cloud technologies, and improve the digital experience for citizens. Maximus directly addresses these needs, helping agencies become more efficient and effective. Furthermore, the company has a strong foothold in the health and human services sector, a domain characterized by consistent and often growing government investment.

The increasing importance of cybersecurity also presents a significant growth avenue. A recent $86 million contract award to advance rapid capability development for Air Force Cyber Command and Control Systems highlights the company's expertise and trusted position in this critical national security area. Beyond the federal sphere, Maximus continues to secure significant state-level projects, such as a recent contract renewal with the Massachusetts Health Connector, demonstrating its ability to deliver value across different levels of government. By strategically positioning itself to meet these enduring and expanding government needs, Maximus has built a resilient business model capable of generating the consistent earnings growth required to support its shareholder-friendly dividend policy.