Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, ...

Company Overview - John Wiley & Sons (WLY) is a Consumer Staples stock headquartered in Hoboken, experiencing a price change of -3.69% this year [3] - The company currently pays a dividend of $0.70 per share, resulting in a dividend yield of 4.81%, which is higher than the Publishing - Books industry's yield of 4.3% and the S&P 500's yield of 1.41% [3] Dividend Performance - The current annualized dividend of John Wiley & Sons is $1.42, reflecting a 0.7% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend 5 times, averaging an annual increase of 0.69% [4] - The current payout ratio is 37%, indicating that the company pays out 37% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for earnings in 2026 is $4.00 per share, with an expected increase of 9.89% from the previous year [5] - The company is anticipated to see earnings expansion this fiscal year, which will influence future dividend growth [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [5] - WLY is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]

Company Overview - John Wiley & Sons (WLY) is located in Hoboken and operates within the Consumer Staples sector [3] - The stock has experienced a price decline of 28.9% since the beginning of the year [3] Dividend Information - The company currently pays a dividend of $0.35 per share, resulting in a dividend yield of 4.57% [3] - The Publishing - Books industry has a slightly higher yield of 4.59%, while the S&P 500's yield stands at 1.42% [3] - The annualized dividend of $1.42 has increased by 0.7% from the previous year [4] - Over the past five years, John Wiley & Sons has raised its dividend five times, averaging an annual increase of 0.69% [4] - The current payout ratio is 37%, indicating that the company distributes 37% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $4.00 per share, reflecting a year-over-year growth rate of 9.89% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investment profits, reduce overall portfolio risk, and offer tax advantages [5] - WLY is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Wiley has declared a quarterly cash dividend of $0.355 per share on its Class A and Class B Common Stock, reflecting its commitment to returning value to shareholders [1] Dividend Announcement - The quarterly dividend is scheduled to be paid on January 15, 2026, to shareholders of record on December 30, 2025 [1] - This dividend translates to an annual dividend of $1.42 per share, indicating an increase compared to previous periods [1]

Core Viewpoint - Wiley has increased its share repurchase allocation for Fiscal 2026 to $100 million, reflecting a significant rise from previous years [1] Financial Performance - The share repurchase allocation for Fiscal 2025 was $60 million, and for Fiscal 2024 it was $45 million, indicating a consistent upward trend in the company's commitment to returning capital to shareholders [1] - In the first half of Fiscal 2026, Wiley has already executed approximately $35 million of the repurchase allocation, with a goal to complete $65 million by the end of the fiscal year [1]

Core Insights - John Wiley & Sons, Inc. has partnered with IQVIA Holdings Inc. to enhance the Clinical Outcome Assessment (COA) execution process, making it a notable dividend stock to consider [1][5]. Partnership Overview - The partnership provides a streamlined solution for COA instruments, making them readily available to pharmaceutical and research organizations, thus simplifying vendor-related workflows and ensuring quality assurance [2][5]. - Traditionally, COA licensing involves multiple vendors, which can delay trial timelines and affect quality assurance. The new collaboration offers a combined COA licensing and implementation solution under one contract, overseen by a rights holder to ensure scientific accuracy [3][4]. Product Offering - Phase one of the partnership includes five Wiley-managed COA tools, with plans to expand to over 100 COAs and full lifecycle services by the end of 2026. These tools are designed for specialized clinical research areas such as anxiety, depression, pediatric cancer, lupus-related organ damage, and physical sexual maturity [4][5]. Company Background - John Wiley & Sons, Inc. is a New Jersey-based publisher that provides reliable content, data insights, and learning services both in the United States and internationally [6].

Group 1 - John Wiley & Sons, Inc. reported fiscal Q2 2026 revenue of $422 million, a slight decrease from $427 million in the prior year, with a $3 million impact from divested businesses [1] - Operating income increased by 14%, and diluted EPS rose 14% to $0.84 compared to $0.74 in the prior year [1] - Adjusted EPS for the quarter was $1.10, reflecting a 12% increase at constant currency, despite a higher adjusted effective tax rate [1] Group 2 - Research revenue grew by 6% to $279 million, primarily driven by a 7% increase in Research Publishing, including $5 million from AI revenue [2] - Article submissions and output saw significant growth, with increases of 28% and 12% respectively, across all key geographies [2] - The company reaffirmed its full-year outlook for adjusted EBITDA margin, adjusted EPS, and free cash flow, while narrowing revenue guidance to the low end of the range due to market challenges in Learning [3] Group 3 - John Wiley & Sons operates through three segments: Research, Learning, and Held for Sale or Sold [3]

Revenue Performance - For the three months ended October 31, 2025, consolidated revenue decreased by $4.8 million, or 1%, compared to the prior year, with Adjusted Revenue of $421.8 million[150][151]. - Research revenue increased by $16.6 million, or 6%, to $278,514 million for the three months ended October 31, 2025, driven by growth in Research Publishing[185]. - Learning revenue decreased by $18.3 million, or 11%, to $143,237 million for the same period, attributed to market-related softness and a decline in print sales[189]. - Revenue for the six months ended October 31, 2025 decreased by $11.9 million, or 1%, compared to the prior year, with a constant currency decrease of 2%[196]. - Research revenue for the six months ended October 31, 2025, increased by $33 million, or 6%, compared to the prior year, with Research Solutions revenue growing by 18%[227]. - Learning revenue decreased by $27.5 million, or 10%, for the six months ended October 31, 2025, compared to the prior year, primarily due to declines in print sales and license revenue[231]. Income and Earnings - Operating income for the same period increased by $8.9 million, or 14%, to $73.0 million, driven by lower operating and administrative expenses[155][164]. - Adjusted EBITDA for the three months ended October 31, 2025, was $115.1 million, reflecting an 8% increase compared to the prior year[155][166]. - US GAAP Income Before Taxes was $58,010 million, an increase from $48,937 million in the same period of 2024, representing a growth of 20%[177]. - Non-GAAP Adjusted Income Before Taxes for the same period was $78,596 million, up from $69,141 million in 2024, reflecting a 14% increase[177]. - Diluted earnings per share increased to $0.84 for the three months ended October 31, 2025, compared to $0.74 in 2024, marking a 14% rise[182]. - Diluted Earnings per Share rose to $1.05 for the six months ended October 31, 2025, up from $0.71 in 2024, marking an increase of 48.6%[224]. Expenses and Cost Management - Operating and administrative expenses decreased by $13.8 million, or 6%, to $225.1 million, primarily due to restructuring and cost savings initiatives[154]. - Operating and administrative expenses decreased by $22.3 million, or 5%, to $465.4 million for the six months ended October 31, 2025[201]. - Interest expense decreased to $11.7 million for the three months ended October 31, 2025, down from $14.5 million in the prior year[169]. - Interest expense decreased to $22.7 million for the six months ended October 31, 2025, down from $27.3 million in the prior year[213]. - The company recorded restructuring and related charges of $6.0 million for the three months ended October 31, 2025, compared to $3.6 million in the prior year[156]. AI and Research Segment - Artificial intelligence (AI) license revenue increased to $6.0 million for the three months ended October 31, 2025, up from $4.0 million in the prior year[150]. - Research AI license revenue reached $4.8 million for the three months ended October 31, 2025, compared to none in the prior year[186]. - AI license revenue increased to $34.9 million for the six months ended October 31, 2025, up from $21 million in the prior year, including $15.7 million from licensed content[196]. - Research AI license revenue surged to $20.7 million for the six months ended October 31, 2025, compared to approximately $1 million in the prior year[228]. - Adjusted EBITDA for the Research segment increased by 14% to $93,280 million on a constant currency basis, driven by higher revenue[187]. - Adjusted Operating Income for the Research segment increased by 18% to $69,961 million for the three months ended October 31, 2025[184]. Tax and Financial Position - The US GAAP Effective Tax Rate increased to 22.6% for the three months ended October 31, 2025, compared to 17.3% in 2024, primarily due to a change in jurisdictional mix of earnings[178]. - The US GAAP Effective Tax Rate decreased to 25.3% for the six months ended October 31, 2025, down from 45.8% in 2024, mainly due to a change in jurisdictional mix of earnings[222]. - The company maintains a strong liquidity position, with operating cash flow and credit facilities expected to meet operational and investment needs over the next twelve months[238]. - As of October 31, 2025, the company had cash and cash equivalents of $67.4 million, with approximately 95% located outside the US[239]. - The company reported approximately $871.7 million of debt outstanding as of October 31, 2025, with $423.5 million of unused borrowing capacity under its Amended and Restated Credit Agreement[241]. Cash Flow and Dividends - For the six months ended October 31, 2025, net cash used in operating activities was $(76.5) million, an improvement from $(94.0) million in the same period of 2024[243]. - Free cash flow less product development spending for the six months ended October 31, 2025 was $(107.9) million, compared to $(130.1) million in the prior year[245]. - Net cash provided by investing activities for the six months ended October 31, 2025 was $72.4 million, a significant increase from net cash used of $(44.5) million in the prior year[252]. - Net cash used in financing activities was $(13.0) million for the six months ended October 31, 2025, compared to net cash provided of $113.1 million in the same period of 2024[253]. - The company increased its quarterly dividend to shareholders to $1.42 per share annualized, up from $1.41 per share in the prior year[254]. Foreign Exchange and Other - Net foreign exchange transaction gains were $1.0 million for the three months ended October 31, 2025, compared to losses of $(3.3) million in the prior year[170][171]. - The company recorded foreign currency translation losses of approximately $(10.0) million for the six months ended October 31, 2025, primarily due to fluctuations in the US dollar relative to the British pound sterling[263]. - Other expense, net was $(2.1) million for the six months ended October 31, 2025, compared to other income, net of $3.0 million in the prior year[220].

Financial Data and Key Metrics Changes - The company reported a mixed revenue picture with strong growth in research and AI, offset by declines in the learning segment [6][10] - Adjusted EBITDA grew 8%, and adjusted operating margin expanded 250 basis points to 18.8% [27][34] - Free cash flow was a use of $108 million, a 17% or $22 million improvement from the prior year [32] Business Line Data and Key Metrics Changes - Research publishing delivered strong 7% growth on worldwide demand, with record submission levels [6][10] - Learning segment revenue declined 11%, primarily due to headwinds in professional and academic areas [30] - Research solutions declined 6% due to lower corporate spending on advertising and recruiting [29] Market Data and Key Metrics Changes - The company noted strong demand across all regions, with double-digit submissions growth in China, India, Japan, the U.K., Germany, and the U.S. [10][11] - Corporate R&D represents a substantial future growth opportunity, currently making up only 10% of the company's revenue base [19] Company Strategy and Development Direction - The company aims to lead in research and drive growth in AI and adjacent markets, with a focus on operational excellence and discipline [10][12] - Strategic partnerships with AI innovators are expected to yield early results, enhancing the company's position in the AI economy [17][25] - The company is prioritizing digital offerings and inclusive access to stabilize revenue in the learning segment [9][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the learning segment due to external factors, including changes in inventory management from Amazon and soft consumer spending [9][30] - The company expects learning declines to moderate in the second half of the year, although revenue is anticipated to be down for the full year [10][34] - Guidance for adjusted EBITDA margin, adjusted EPS, and free cash flow has been reaffirmed, with revenue growth expected to be in the low single digits [34] Other Important Information - The company executed another AI licensing project, bringing total AI training revenue close to $100 million in less than two years [7][20] - Share repurchases increased by 69% to $21 million, with a current yield around 3.9% [8][33] Q&A Session Summary Question: Research revenue growth and potential upside - Management indicated that they expect to grow at the top of the market growth, with strong article growth as a leading indicator [41][46] Question: AI licensing revenue and pipeline opportunities - The company confirmed a $6 million licensing deal with an existing LLM customer, indicating a continuing pipeline for AI opportunities [48][49] Question: Decline in learning segment and inventory management impact - Management noted that the decline is primarily cyclical rather than structural, with expectations for normalization in the second half [54][56] Question: Share buybacks and capital allocation strategy - The company maintains a disciplined approach to capital allocation, balancing share buybacks with growth opportunities and managing leverage [58][60]

Revenue Performance - Q2 2026 revenue of $422 million, down 1% year-over-year, with operating income of $73 million, up 14%, and diluted EPS of $0.84, also up 14%[7] - Total revenue for the three months ended October 31, 2025, was $421.8 million, a slight decrease of 1% compared to $426.6 million in 2024[30] - Total revenue for the six months ended October 31, 2025, was $818,551,000, a decrease of 1% compared to $830,404,000 in the same period of 2024[34] Segment Performance - Research revenue for Q2 was $279 million, up 6% as reported, driven by 7% growth in Research Publishing, including $5 million from AI revenue; article submissions rose by 28%[8] - Learning revenue for Q2 was $143 million, down 11% due to market-related softness, with professional and academic segments down 16% and 8%, respectively[8] - Research Publishing revenue for the three months ended October 31, 2025, was $241.4 million, an 8% increase from $222.7 million in 2024[30] - Learning segment revenue decreased by 10% to $258,345,000, with Academic revenue down 8% and Professional revenue down 12%[34] Profitability Metrics - Adjusted EBITDA for Q2 was $93 million, up 14%, with a margin of 33.5%, compared to 31.3% in the prior year[8] - Non-GAAP Adjusted EBITDA for the six months ended October 31, 2025, was $185.5 million, compared to $178.2 million in 2024, indicating a 4.7% increase[27] - The Adjusted EBITDA margin for the three months ended October 31, 2025, was 27.3%, up from 24.9% in the same period of 2024[27] - Non-GAAP adjusted operating income for the six months ended October 31, 2025, was $113,137,000, reflecting a 9% increase from $104,181,000 in 2024[34] Cash Flow and Capital Management - Year-to-date operating cash flow improved by 19%, and free cash flow improved by 17%[7] - Free cash flow usage improved to $108 million from $130 million in the prior year, largely due to higher cash earnings and lower capex[16] - Net cash used in operating activities was $(76,505,000) for the six months ended October 31, 2025, compared to $(93,992,000) in 2024[39] - Free cash flow less product development spending was $(107,926,000) for the six months ended October 31, 2025, compared to $(130,149,000) in 2024[40] Shareholder Returns - Share repurchases increased by 69% year-over-year to $21 million, with a dividend yield around 3.9%[7] - Full-year outlook for adjusted EBITDA margin is 25.5% to 26.5%, with adjusted EPS guidance of $3.90 to $4.35[12] - Adjusted EPS, Adjusted Revenue, Adjusted Operating Income, and margin are key metrics used by shareholders to evaluate the company's performance[50] Debt and Financial Position - Net debt-to-EBITDA ratio improved to 2.0 from 2.2 in the prior year, with $120 million of divestiture proceeds used to reduce debt[16] - Total assets decreased to $2,466,739,000 as of October 31, 2025, from $2,691,466,000 as of April 30, 2025[36] - Total liabilities decreased to $1,726,550,000 as of October 31, 2025, from $1,939,260,000 as of April 30, 2025[36] - Cash and cash equivalents at the end of the period were $67,454,000, down from $75,586,000 at the end of the previous year[39] Income Metrics - For the three months ended October 31, 2025, the diluted US GAAP Earnings Per Share (EPS) was $0.84, compared to $0.74 for the same period in 2024, representing a 13.5% increase[23] - Non-GAAP Adjusted EPS for the same period was $1.10, up from $0.97 in 2024, reflecting a 13.4% increase[23] - US GAAP Income Before Taxes for the three months ended October 31, 2025, was $58.01 million, compared to $48.94 million in 2024, marking an 18.5% increase[24] - Non-GAAP Adjusted Income Before Taxes for the same period was $78.60 million, up from $69.14 million in 2024, reflecting a 13.5% increase[24] Currency Impact - Results on a constant currency basis provide better comparability of business trends by removing the effects of foreign currency movements[50]