Understanding L3Harris Technologies Inc's Dividend Performance
L3Harris Technologies Inc (LHX, Financial) recently announced a dividend of $1.16 per share, payable on 2024-03-22, with the ex-dividend date set for 2024-03-07. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into L3Harris Technologies Inc's dividend performance and assess its sustainability.
What Does L3Harris Technologies Inc Do?
L3Harris Technologies provides products for the command, control, communications, computers, intelligence, surveillance, and reconnaissance, or C4ISR, market. The firm produces uncrewed aerial vehicles, sensors, and avionics, as well as provides military and commercial training services and maintains the U.S. Federal Aviation Administration's communications infrastructure. In July 2023, the company acquired Aerojet Rocketdyne, a key supplier of rocket motors to the space and defense industry.
A Glimpse at L3Harris Technologies Inc's Dividend History
L3Harris Technologies Inc has maintained a consistent dividend payment record since 1984, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 2001, earning it the status of a dividend achiever, a prestigious recognition for companies with at least 23 consecutive years of dividend increases. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down L3Harris Technologies Inc's Dividend Yield and Growth
As of today, L3Harris Technologies Inc currently has a 12-month trailing dividend yield of 2.10% and a 12-month forward dividend yield of 2.14%, suggesting an expectation of increased dividend payments over the next 12 months. Over the past three years, L3Harris Technologies Inc's annual dividend growth rate was 10.30%, with a five-year increase to 15.80% per year. Over the past decade, the annual dividends per share growth rate stands at an impressive 12.70%. The 5-year yield on cost for L3Harris Technologies Inc stock is approximately 4.37% as of today.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. L3Harris Technologies Inc's dividend payout ratio is currently 0.50, suggesting a balanced approach to distributing earnings and retaining funds for future growth and stability. The company's profitability rank is 8 out of 10 as of 2023-12-31, indicating good profitability prospects. Consistent positive net income over the past decade further solidifies its financial robustness.
Growth Metrics: The Future Outlook
Robust growth metrics are essential for the sustainability of dividends. L3Harris Technologies Inc's growth rank of 8 out of 10 suggests a good growth trajectory. The company's revenue per share and 3-year revenue growth rate of 6.50% per year outperform approximately 56.6% of global competitors. The 3-year EPS growth rate of 14.20% per year outperforms about 60% of global competitors. Additionally, the 5-year EBITDA growth rate of 13.20% outperforms approximately 64.62% of global competitors.
Next Steps
In conclusion, L3Harris Technologies Inc's consistent dividend payments, robust growth in dividend rates, a balanced payout ratio, and strong profitability and growth metrics present an attractive profile for value investors. The company's commitment to returning value to shareholders through dividends, combined with its strategic position in the defense and aerospace sector, suggest a sustainable dividend policy. As investors consider the prospects of L3Harris Technologies Inc, they may also leverage tools like the High Dividend Yield Screener available to GuruFocus Premium users to explore other high-dividend yield opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
