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ACN's Focus on Dividend-Payments Bodes Well: More Upside Ahead?
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Key Takeaways
ACN has been consistently making efforts to reward its shareholders through dividends and share buybacks.
Accenture raised its quarterly dividend by 10.1% to $1.63, marking continued payout growth.
For fiscal 2026, Accenture anticipates rewarding its shareholders with at least $9.3 billion in cash.
Accenture plc (ACN - Free Report) has long been a reliable dividend stock in the Zacks Computer and Technology sector. With a current yield of 3.30% and a five-year dividend growth rate of 14.21%, its payouts are no doubt appealing.
Dividend-paying stocks are known for providing steady income and typically experience less volatility than non-dividend payers. As a result, they are often viewed as dependable vehicles for long-term wealth creation, with dividends helping to offset the effects of economic turbulence — conditions that remain prevalent today. Accenture scores well in that respect.
On Sept. 25, 2025, Accenture announced a 10.1% increase in its quarterly dividend to $1.63 per share. The increased dividend was paid on Nov. 14, 2025, to its shareholders of record on Oct. 10, 2025. Over the past five years, Accenture has increased its dividend five times.
In fiscal 2025, Accenture returned $8.3 billion to shareholders, which includes $4.6 billion in the form of share repurchases and $3.7 billion through dividend payments. Free cash flow was $10.87 billion in fiscal 2025, higher than $8.61 billion witnessed in fiscal 2024. Operating cash flow was $11.47 billion in fiscal 2025, higher than $9.13 billion in fiscal 2024. The improved figures reflect a strong cash-generating ability. Strong and recurring cash flow generation supports the company’s efforts to pay dividends to its shareholders.
For fiscal 2026, Accenture anticipates rewarding its shareholders with at least $9.3 billion in cash.
Taking a Peek at Some Other Dividend-Paying Computer & Technology Stocks
Dell Technologies Inc. (DELL - Free Report) ) has also been rewarding its shareholders with dividends. In February 2026, DELL’s board of directors approved a dividend hike of 19%, thereby raising its quarterly cash dividend to 63 cents per share ($2.52 annualized) from 53 cents ($2.12 annualized). The move reflects DELL’s intention to utilize free cash to enhance its shareholders’ returns. With a current yield of 1.28% and a five-year dividend growth rate of 16.45%, DELL's payout ratio currently sits at 22% of earnings.
Hewlett Packard Enterprise Company (HPE - Free Report) is another prominent name in the Computer and Technology sector when it comes to rewarding shareholders through dividend payments. In 2025, Hewlett Packard’s board approved a 9.6% boost to its dividend, raising the payout from 13 cents to 14.25 cents per share. With a current yield of 2.52% and a five-year dividend growth rate of 2.34%, Hewlett Packard’s payout ratio currently sits at 33% of earnings.
ACN’s Price Performance, Valuation & Estimates
Shares of Accenture have declined 26.3% over the past three months compared with the Zacks Computers - IT Services industry’s loss of 21.2%.
3-Month Price Comparison
Image Source: Zacks Investment Research
From a valuation standpoint, ACN trades at a 12-month forward price-to-sales ratio of 1.72X, lower than industrial levels.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings per share has improved in the past 90 days.
View the Zacks #1 Rank List
Image: Bigstock
ACN's Focus on Dividend-Payments Bodes Well: More Upside Ahead?
Key Takeaways
Accenture plc (ACN - Free Report) has long been a reliable dividend stock in the Zacks Computer and Technology sector. With a current yield of 3.30% and a five-year dividend growth rate of 14.21%, its payouts are no doubt appealing.
Dividend-paying stocks are known for providing steady income and typically experience less volatility than non-dividend payers. As a result, they are often viewed as dependable vehicles for long-term wealth creation, with dividends helping to offset the effects of economic turbulence — conditions that remain prevalent today. Accenture scores well in that respect.
On Sept. 25, 2025, Accenture announced a 10.1% increase in its quarterly dividend to $1.63 per share. The increased dividend was paid on Nov. 14, 2025, to its shareholders of record on Oct. 10, 2025. Over the past five years, Accenture has increased its dividend five times.
In fiscal 2025, Accenture returned $8.3 billion to shareholders, which includes $4.6 billion in the form of share repurchases and $3.7 billion through dividend payments. Free cash flow was $10.87 billion in fiscal 2025, higher than $8.61 billion witnessed in fiscal 2024. Operating cash flow was $11.47 billion in fiscal 2025, higher than $9.13 billion in fiscal 2024. The improved figures reflect a strong cash-generating ability. Strong and recurring cash flow generation supports the company’s efforts to pay dividends to its shareholders.
For fiscal 2026, Accenture anticipates rewarding its shareholders with at least $9.3 billion in cash.
Taking a Peek at Some Other Dividend-Paying Computer & Technology Stocks
Dell Technologies Inc. (DELL - Free Report) ) has also been rewarding its shareholders with dividends. In February 2026, DELL’s board of directors approved a dividend hike of 19%, thereby raising its quarterly cash dividend to 63 cents per share ($2.52 annualized) from 53 cents ($2.12 annualized). The move reflects DELL’s intention to utilize free cash to enhance its shareholders’ returns. With a current yield of 1.28% and a five-year dividend growth rate of 16.45%, DELL's payout ratio currently sits at 22% of earnings.
Hewlett Packard Enterprise Company (HPE - Free Report) is another prominent name in the Computer and Technology sector when it comes to rewarding shareholders through dividend payments. In 2025, Hewlett Packard’s board approved a 9.6% boost to its dividend, raising the payout from 13 cents to 14.25 cents per share. With a current yield of 2.52% and a five-year dividend growth rate of 2.34%, Hewlett Packard’s payout ratio currently sits at 33% of earnings.
ACN’s Price Performance, Valuation & Estimates
Shares of Accenture have declined 26.3% over the past three months compared with the Zacks Computers - IT Services industry’s loss of 21.2%.
3-Month Price Comparison
From a valuation standpoint, ACN trades at a 12-month forward price-to-sales ratio of 1.72X, lower than industrial levels.
The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings per share has improved in the past 90 days.
ACN's Zacks Rank
Accenture currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.