Wiley's Dividend Power Play: A 32-Year Streak and AI's Secret Sauce

Let me tell you, folks—when a company can raise its dividend for 32 straight years, it's not just a fluke. It's proof of a business model that's weathered every storm. Wiley (NYSE: WLY) isn't just surviving—it's thriving, and today's dividend hike to $0.355 per share quarterly ($1.42 annually) is just the latest chapter in its story of fiscal discipline and forward-thinking innovation.

The Dividend Machine: 32 Years and Counting

Wiley's dividend streak is the kind of thing that makes income investors drool. With a yield of 3.25%, it's not just about the cash in your pocket—it's about the certainty of that cash. This isn't a flash-in-the-pan tech stock; this is a company that's been around since 1807, publishing foundational textbooks and research journals. But here's the kicker: it's growing that dividend while pouring capital into cutting-edge tech.

Backtest the performance of Wiley (WLY) when 'buy condition' is triggered by dividend increases announced quarterly, holding until the next dividend payout or 90 days, from 1993 to 2025.

That's the magic here. While peers in traditional publishing struggle, Wiley is reinvesting in its future. In 2025 alone, it allocated $76 million to dividends and $60 million to buybacks, a 34% jump over the prior year. And with a $250 million buyback authorization—up from $200 million—it's clear management isn't just returning capital; they're protecting it.

The AI Revolution: Cash Flow Meets Cutting-Edge Tech

Here's where the “secret sauce” comes in. Wiley isn't just a relic of the print era; it's a pioneer in the knowledge economy. Its AI licensing revenue doubled year-over-year to $40 million—a figure that's set to explode as it partners with tech giants to license its vast databases of academic research and educational content.

This isn't just about selling data. It's about owning the pipeline to knowledge in an age where AI needs training data to learn. Think of it like this: if you're building an AI that needs to understand quantum physics or medical research, you're going to come to Wiley. And that's recurring revenue with moats—because how many companies have 200 years of peer-reviewed research digitized?

The Financials: Resilience in a Volatile World

The skeptics will say, “But publishing? That's a dying industry!” Not when you're firing on all cylinders. In 2025, Wiley hit $405 million in Q1 revenue, with Adjusted EBITDA margins expanding by 300 basis points. Free cash flow is projected to hit $200 million in 2026, fueling both dividends and buybacks.

And let's not overlook the leadership. New CFO Craig Albright—30 years of finance experience, including stints at Xerox—isn't there to “manage decline.” He's there to execute. This isn't a company in retreat; it's in expansion mode.

The Bull Case: Income + Growth = A Winning Combo

So here's why Wiley belongs in your portfolio:

1. Predictable Income: A 3.25% yield with a 32-year dividend growth streak is a rarity. You're not just getting cash—you're getting certainty. Historically, buying WLY on dividend hikes triggered an average 1.55% gain over the holding period, per backtests—proving this strategy captures both income and short-term upside.
2. AI as a Growth Engine: The $40 million in AI revenue is a sliver of its potential. As partnerships with tech firms expand, this could become a billion-dollar business.
3. Financial Fortitude: With $200M+ in free cash flow and a GOOD financial health score, Wiley isn't overleveraged or overvalued. The P/E of 58.87? Sure, it's rich—but so are its growth prospects.

The Bottom Line: A Dividend Aristocrat with Tech Legs

Wiley isn't just a “safe” income stock—it's a strategic asset in the AI arms race. The dividend's up, the cash flow's strong, and the AI pivot is real. For investors tired of chasing meme stocks or overhyped tech, here's a stock that's quietly building a moat in the most critical sector of all: knowledge.

Investment Advice: If you're looking for income with growth upside, buy the dips on WLY. Set a price target at $50 by 2026—based on its yield and free cash flow growth—and hold onto it for the long haul. This isn't a trade; it's an ownership stake in the future of learning.

In a world of volatility, Wiley's steady hand—and its AI-powered future—is a must-own.