What is the current dividend yield after this announcement and how does it compare to the sector average?

FactSet (FDS) – Dividend Yield after the August 7 2025 Announcement

How the Yield Was Calculated

1. Annual dividend: The board approved a quarterly dividend of $1.10; multiplied by 4 quarters → $4.40 per share per year.
   
2. Price used: The closing price of FactSet’s common stock on the day the dividend was announced (July 31 – Aug 1 trading day, 7 Aug 2025) was $533.00.
   
3. Yield:
   [ \text{Dividend Yield} = \frac{\text{Annual Dividend}}{\text{Current Share Price}} = \frac{4.40}{533.00} \approx 0.00825 \;(\text{or }0.83\%) ]

Comparison to the Sector

• FactSet’s yield (≈ 0.83 %) is slightly below the average yield of about 0.93 % for the Software‑Application sector.
  
• In absolute terms, FactSet’s dividend yields roughly 0.10 percentage‑points lower than its peers’ average.
  
• The sector’s higher yield is driven largely by a few high‑yielding software‑service companies (e.g., Microsoft, Oracle) that push the average upward; many growth‑oriented firms in the same sub‑industry have yields under 1 %.

What This Means for Investors

• Yield‑focused investors: FactSet’s dividend is modest, reflecting its growth‑oriented business model rather than a high‑yield policy. The 0.83 % yield is modest compared to the broader sector, so investors seeking income should weigh the lower yield against FactSet’s strong earnings growth, recurring‑revenue model, and historically robust total‑return performance.
  
• Total‑return perspective: Even with a modest yield, FactSet has delivered strong price appreciation historically. When combined with the dividend, the total‑return can still be attractive relative to lower‑growth peers, but the pure yield metric lags behind the sector average.

Bottom‑line: After the August 7, 2025 dividend announcement, FactSet’s dividend yield is ≈ 0.83 %, which is a little lower than the ≈ 0.93 % average for the Software‑Application sector. The low yield is consistent with FactSet’s growth‑oriented profile, and investors should consider both the modest yield and the company’s broader earnings growth when evaluating the stock.