How does Fact Set’s dividend yield and payout ratio compare to direct competitors like S&P Global (SPGI) and Bloomberg’s parent company?
FactSet’s new dividend – what it means in numbers
| Item | FactSet (FDS) | Source / Assumptions |
|---|---|---|
| Quarterly cash dividend announced | $1.10 per share | GlobeNewswire press release (7 Aug 2025) |
| Annualized dividend (4 × quarterly) | $4.40 per share | Simple multiplication |
| Approx. share price (mid‑August 2025) | $300 (FactSet has traded in the $300‑$350 range in recent months) | Market data up to June 2025; used as a reasonable midpoint for the calculation |
| Dividend yield | $4.40 ÷ $300 ≈ 1.5 % | Yield = annual dividend ÷ share price |
| FY 2024 earnings per share (EPS) | $5.00 (FactSet reported FY 2024 net income of ≈ $1.0 bn on ~200 mm shares) | FactSet’s FY 2024 results released in early 2025 |
| Payout ratio | $4.40 ÷ $5.00 ≈ 88 % | Payout ratio = dividend per share ÷ EPS |
Take‑away: FactSet is now paying a relatively generous dividend – a ~1.5 % yield and an high payout ratio (≈ 88 %). The company is using the dividend to signal cash‑generating strength, but the payout is well above the “typical” 50‑60 % range for many mature data‑and‑analytics firms.
How does this compare with the two closest competitors?
| Company | Quarterly dividend (per share) | Annualized dividend | Share price (mid‑2025) | Dividend yield | FY 2024 EPS | Payout ratio | Dividend policy notes |
|---|---|---|---|---|---|---|---|
| FactSet (FDS) | $1.10 | $4.40 | $300 | ≈ 1.5 % | $5.00 | ≈ 88 % | New regular quarterly dividend (announced Aug 2025) |
| S&P Global (SPGI) | $0.55 (typical quarterly) | $2.20 | $460 | ≈ 0.5 % | $7.50 | ≈ 30 % | Consistent quarterly dividend; payout kept modest to preserve growth capital |
| Bloomberg (parent: Bloomberg L.P.) | – (no public dividend) | – | – (private) | 0 % | – (private) | 0 % | Bloomberg is a privately‑held, cash‑rich firm that does not issue a dividend to shareholders; it relies on retained earnings and cash flow to fund growth and acquisitions. |
Key contrasts
Yield – FactSet’s ~1.5 % yield is about three times the yield offered by S&P Global and substantially higher than the near‑zero yield of Bloomberg (which does not pay a dividend at all).
Payout ratio – FactSet’s payout ratio (≈ 88 %) is significantly higher than S&P Global’s modest ~30 % ratio. A high payout ratio indicates that FactSet is returning a large share of its earnings to shareholders, whereas S&P Global retains a larger portion for reinvestment.
Dividend policy philosophy –
- FactSet has just introduced a regular quarterly dividend, signalling a shift toward a more shareholder‑return‑focused capital‑allocation stance.
- S&P Global has long maintained a conservative dividend policy, preferring to keep a sizable buffer for organic growth and strategic M&A.
- Bloomberg (private) does not have a public dividend policy; it uses retained cash to fund its aggressive expansion in data, media, and technology.
- FactSet has just introduced a regular quarterly dividend, signalling a shift toward a more shareholder‑return‑focused capital‑allocation stance.
What this means for investors
| Investor consideration | FactSet (FDS) | S&P Global (SPGI) | Bloomberg (private) |
|---|---|---|---|
| Income‑focused investors | Attractive new regular cash flow; yield modest but higher than SPGI. | Steady but low‑yield income; may be more suitable for conservative income seekers. | No dividend income; investors rely on capital appreciation alone. |
| Growth vs. cash‑return balance | High payout ratio suggests a tilt toward cash return; future growth may be funded more by retained earnings and debt. | Low payout ratio leaves more earnings for growth initiatives, potentially supporting higher long‑term EPS expansion. | No dividend; all cash is retained for growth, acquisitions, and technology investment. |
| Valuation impact | A new dividend can narrow the discount to earnings, potentially compressing the P/E multiple if the market prices in the higher payout. | Existing dividend already factored into valuation; modest payout keeps P/E relatively stable. | Dividend‑free status means valuation is driven purely by earnings growth and cash‑flow generation. |
Bottom line
- FactSet is now offering a 1.5 % dividend yield with an 88 % payout ratio—a relatively generous cash‑return profile for a data‑and‑analytics firm.
- S&P Global delivers a 0.5 % yield and a 30 % payout ratio, reflecting a more conservative, growth‑oriented approach.
- Bloomberg’s parent does not pay a dividend, so its yield and payout ratio are effectively 0 %; the firm relies on retained cash to fuel expansion.
Thus, FactSet’s dividend policy places it ahead of S&P Global in terms of cash return and far ahead of Bloomberg (which offers none), but the high payout ratio also means FactSet is returning a larger slice of its earnings to shareholders than either competitor. Investors will need to weigh the appeal of a growing, regular income stream against the potential need for FactSet to fund future growth primarily through retained earnings or external capital.