L3Harris Technologies Inc's Dividend Analysis
An In-Depth Look at L3Harris Technologies Inc's Upcoming Dividend and Financial Health
L3Harris Technologies Inc (NYSE:LHX) recently announced a dividend of $1.14 per share, payable on 2023-12-01, with the ex-dividend date set for 2023-11-16. 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?
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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. Dividends are currently distributed on a quarterly basis. L3Harris Technologies Inc has increased its dividend each year since 2001. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 22 years. Below is a chart showing annual Dividends Per Share for tracking 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 2.45% and a 12-month forward dividend yield of 2.46%. This suggests 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 17.80%. Extended to a five-year horizon, this rate decreased to 17.70% per year. And over the past decade, L3Harris Technologies Inc's annual dividends per share growth rate stands at an impressive 13.10%.
Based on L3Harris Technologies Inc's dividend yield and five-year growth rate, the 5-year yield on cost of L3Harris Technologies Inc stock as of today is approximately 5.53%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-09-30, L3Harris Technologies Inc's dividend payout ratio is 0.58.
L3Harris Technologies Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks L3Harris Technologies Inc's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. L3Harris Technologies Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and L3Harris Technologies Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. L3Harris Technologies Inc's revenue has increased by approximately 16.00% per year on average, a rate that outperforms approximately 82.26% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, L3Harris Technologies Inc's earnings increased by approximately 4.60% per year on average, a rate that outperforms approximately 51.6% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 13.00%, which outperforms approximately 62.99% of global competitors.
Next Steps
In conclusion, L3Harris Technologies Inc's upcoming dividend payment, consistent dividend growth, reasonable payout ratio, and strong profitability and growth metrics paint a promising picture for current and prospective investors. With a robust dividend history and a forward-looking growth strategy, L3Harris Technologies Inc remains an attractive option for those seeking stable income through dividends. Investors are encouraged to consider the company's financial health and industry position when making investment decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to find similar investment 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.
This article first appeared on GuruFocus.
