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L3Harris (LHX) Rewards Shareholders With 1.8% Dividend Hike
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L3Harris Technologies (LHX - Free Report) recently announced that the board of directors has approved a 1.8% increase in the quarterly dividend rate. The revised quarterly dividend will be $1.16, payable on Mar 22, 2024, to shareholders of record at the close of business on Mar 8.
L3Harris has been consistently increasing dividends for 23 years. The company’s new annualized dividend rate is $4.64 per share, resulting in an annualized dividend yield of 2.19%, based on its share price of $211.74 as of Feb 27, 2024. The current dividend yield is better than the Zacks S&P 500 composite’s 1.32%.
Can We Expect Hikes in the Coming Years?
L3Harris’ dividend payment history indicates that the company has been performing steadily and generating enough cash flow to distribute dividends to shareholders. As of Dec 29, 2023, L3Harris had a total cash and cash equivalents of $560 million. For 2023, the company had cash inflow from operating activities worth $2.10 billion.
It is imperative to mention that meaningful returns from a company’s investments allow it to duly reward its shareholders. To this end, L3Harris plans to continue to make systematic investments to generate strong cash flows in the long run. The company projects capital expenditure to be around 2% of its revenues.
During 2023, L3Harris completed two acquisitions — Tactical Data Links and Aerojet Rocketdyne. This will help the company strengthen its national security portfolio and add a considerable long-cycle backlog. Positive synergies from these acquisitions are expected to boost LHX’s future operating results, thereby enabling the company to reward its shareholders with regular dividend hikes.
The company expects a target payout in the range of 35-40% of free cash flow. This reinforces its financial prowess through strong earnings and its ability for enhanced dividend disbursements.
Dividend History of Peers
LHX is not the only one in the aerospace-defense space that has a consistent dividend payment history. There are many other players that have a similar track record.
RTX Corporation (RTX - Free Report) : RTX’s current quarterly dividend stands at 59 cents per share, representing 7.3% growth from the previous-year quarter. The company’s annualized dividend rate is $2.36 per share. RTX’s payout currently is 47% of earnings.
The current dividend yield of RTX is 2.61%, better than the Zacks S&P 500 composite’s yield of 1.32%. The stock’s long-term (three to five years) earnings growth is pegged at 10.2%.
Lockheed Martin (LMT - Free Report) : Lockheed’s current quarterly dividend stands at $3.15 per share, representing 5% growth from the previous-year quarter. The company’s annualized dividend rate is $12.60 per share. LMT’s payout currently is 45% of earnings.
The current dividend yield of LMT is 2.93%, better than the Zacks S&P 500 composite’s yield of 1.32%. The stock’s long-term earnings growth is pegged at 4.2%.
General Dynamics (GD - Free Report) : General Dynamics’ current quarterly dividend stands at $1.32 per share, representing 4.8% growth from the previous-year quarter. The company’s annualized dividend rate is $5.28 per share. GD’s payout currently is 44% of earnings.
The current dividend yield of GD is 1.93%, better than the Zacks S&P 500 composite’s yield of 1.32%. The stock’s long-term earnings growth is pegged at 10.8%.
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L3Harris (LHX) Rewards Shareholders With 1.8% Dividend Hike
L3Harris Technologies (LHX - Free Report) recently announced that the board of directors has approved a 1.8% increase in the quarterly dividend rate. The revised quarterly dividend will be $1.16, payable on Mar 22, 2024, to shareholders of record at the close of business on Mar 8.
L3Harris has been consistently increasing dividends for 23 years. The company’s new annualized dividend rate is $4.64 per share, resulting in an annualized dividend yield of 2.19%, based on its share price of $211.74 as of Feb 27, 2024. The current dividend yield is better than the Zacks S&P 500 composite’s 1.32%.
Can We Expect Hikes in the Coming Years?
L3Harris’ dividend payment history indicates that the company has been performing steadily and generating enough cash flow to distribute dividends to shareholders. As of Dec 29, 2023, L3Harris had a total cash and cash equivalents of $560 million. For 2023, the company had cash inflow from operating activities worth $2.10 billion.
It is imperative to mention that meaningful returns from a company’s investments allow it to duly reward its shareholders. To this end, L3Harris plans to continue to make systematic investments to generate strong cash flows in the long run. The company projects capital expenditure to be around 2% of its revenues.
During 2023, L3Harris completed two acquisitions — Tactical Data Links and Aerojet Rocketdyne. This will help the company strengthen its national security portfolio and add a considerable long-cycle backlog. Positive synergies from these acquisitions are expected to boost LHX’s future operating results, thereby enabling the company to reward its shareholders with regular dividend hikes.
The company expects a target payout in the range of 35-40% of free cash flow. This reinforces its financial prowess through strong earnings and its ability for enhanced dividend disbursements.
Dividend History of Peers
LHX is not the only one in the aerospace-defense space that has a consistent dividend payment history. There are many other players that have a similar track record.
RTX Corporation (RTX - Free Report) : RTX’s current quarterly dividend stands at 59 cents per share, representing 7.3% growth from the previous-year quarter. The company’s annualized dividend rate is $2.36 per share. RTX’s payout currently is 47% of earnings.
The current dividend yield of RTX is 2.61%, better than the Zacks S&P 500 composite’s yield of 1.32%. The stock’s long-term (three to five years) earnings growth is pegged at 10.2%.
Lockheed Martin (LMT - Free Report) : Lockheed’s current quarterly dividend stands at $3.15 per share, representing 5% growth from the previous-year quarter. The company’s annualized dividend rate is $12.60 per share. LMT’s payout currently is 45% of earnings.
The current dividend yield of LMT is 2.93%, better than the Zacks S&P 500 composite’s yield of 1.32%. The stock’s long-term earnings growth is pegged at 4.2%.
General Dynamics (GD - Free Report) : General Dynamics’ current quarterly dividend stands at $1.32 per share, representing 4.8% growth from the previous-year quarter. The company’s annualized dividend rate is $5.28 per share. GD’s payout currently is 44% of earnings.
The current dividend yield of GD is 1.93%, better than the Zacks S&P 500 composite’s yield of 1.32%. The stock’s long-term earnings growth is pegged at 10.8%.
Zacks Rank
LHX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
In the past year, shares of LHX have rallied 0.8% against the industry’s 9.2% decline.
Image Source: Zacks Investment Research