What are the expected earnings per share (EPS) and cash flow figures for Q3 2025, and can the company comfortably sustain the announced dividend?

Answer Overview

The press release you quoted only announces the cash‑dividend amounts for the third quarter of 2025 ( $0.80 per common share and $0.50 per preferred share ). It does not disclose the company’s projected earnings‑per‑share (EPS) or cash‑flow numbers for that quarter.

Below is a step‑by‑step framework that you can use to evaluate whether Jackson Financial Inc. (ticker JXN) can comfortably sustain the newly‑declared dividend, together with the key data points you’ll still need to locate (e.g., from the most recent 10‑Q, earnings call transcript, or analyst consensus estimates).

1. What the news tells us

No EPS or cash‑flow guidance is included.

2. How to gauge dividend sustainability

2.1 Core metrics to calculate (you’ll need the numbers)

2.2 What you need to plug in

3. Example (illustrative) calculation

Because the press release does not give the numbers, the following uses *hypothetical but plausible** figures based on Jackson’s historical performance (2023‑2024) and typical industry ratios. Replace these with the actual numbers you retrieve from the SEC filings or analyst consensus for a precise assessment.*

Derived ratios

Interpretation of the illustrative example

• Even with a 67 % payout ratio—higher than the “classic < 50 %” rule for pure equity‑paying firms—the cash‑flow coverage > 2× suggests the dividend is well‑funded by operating cash.
  
• The free‑cash‑flow ratio also exceeds 2, reinforcing that the company can meet the payout even after accounting for capital spending.
  
• A solid regulatory capital cushion means the dividend does not jeopardize solvency requirements.

If the real Q3 2025 EPS is near or above $1.10 and cash‑flow per share is above $1.50, the same conclusion holds: the dividend is sustainable. Conversely, if EPS is projected at $0.70 (payout > 100 %) while cash flow remains modest, the dividend would be riskier and might rely on retained earnings or capital reserves.

4. Practical steps you can take right now

1. Pull the latest 10‑Q (or 8‑K) filing for Jackson Financial (SEC CIK 0000834375).

   • Look at the Consolidated Statements of Operations for net income and EPS.
     
   • Review the Consolidated Statements of Cash Flows for operating cash flow and capex.
     

2. Check analyst consensus on Bloomberg/FactSet/Refinitiv for “Jackson Financial Q3 2025 EPS Estimate.”

   • Note the standard deviation to gauge uncertainty.
     

3. Calculate the payout ratio using the actual EPS estimate:
   
   [
   \text{Payout Ratio} = \frac{0.80}{\text{EPS}} \times 100\%
   ]

4. Compute cash‑flow coverage:
   
   [
   \text{Cash‑Flow Coverage} = \frac{\text{Operating cash flow per share}}{0.80}
   ]

5. Cross‑check the capital‑adequacy ratio in the same filing. If the ratio is comfortably above the regulator’s minimum (usually ~12 % for U.S. insurers), the dividend is unlikely to be blocked.

6. Compare to prior quarters – Jackson historically paid $0.70 per share in Q2 2025. A modest increase to $0.80 is a ≈ 14 % rise, which is generally viewed as a sign of confidence rather than a “stretch” of resources.

5. Bottom line (based on the information you have)

• The press release itself does not disclose EPS or cash‑flow figures, so a definitive answer cannot be given without pulling the missing data from the company’s SEC filings or analyst estimates.
  

• Using a typical financial‑services sustainability framework, you can assess the dividend by:

  1. Payout ratio (dividend ÷ EPS) – aim for ≤ 70 % for insurers that have steady cash flow.
     
  2. Cash‑flow coverage (OCF ÷ dividend) – a ratio of ≥ 1.5–2.0 is considered comfortable.
     3 Regulatory capital – ensure the capital‑adequacy ratio stays well above the required floor.
     

• If Jackson’s projected Q3 2025 EPS is roughly $1.10–$1.30 and operating cash flow per share is $1.60–$2.00, the dividend of $0.80 per common share (plus the $0.50 preferred dividend) would be well‑supported.

• If earnings or cash flow are substantially lower, the payout ratio could exceed 100 % and the cash‑flow coverage could dip below 1.0, raising sustainability concerns.

Action: Retrieve the actual Q3 2025 EPS and cash‑flow numbers from the latest SEC filing or a reputable data provider, plug them into the formulas above, and you’ll have a concrete answer on whether Jackson Financial can comfortably sustain the announced dividend.