NEWPORT NEWS, Va. - Huntington Ingalls Industries (NYSE: NYSE:HII), the largest military shipbuilder in the United States, has announced an increase in its quarterly cash dividend. The Board of Directors declared a dividend of $1.35 per share, which marks a $0.05 rise from the previous $1.30 per share. This new dividend is scheduled to be paid on December 13, 2024, to shareholders on record as of November 29, 2024.
HII has a significant presence in the defense sector, providing a range of services beyond shipbuilding, including unmanned systems, cyber intelligence, surveillance, reconnaissance (ISR), artificial intelligence/machine learning (AI/ML), and synthetic training. With a history spanning over 135 years, HII plays a crucial role in advancing U.S. national security. The company employs a strong workforce of 44,000 people.
The increase in dividend reflects a continuation of the company's commitment to delivering value to its shareholders. Dividends are a way for companies to distribute profits back to shareholders, and an increase often signals confidence in the company's financial stability and future earnings prospects.
This financial move comes at a time when the defense industry is experiencing steady demand due to geopolitical tensions and a global emphasis on security. HII's position as a key player in this sector, with its expansive portfolio and long-standing history, positions it as a notable entity in the defense market.
The information for this report is based on a press release statement from HII. The company's stock performance and future dividends will continue to be watched closely by investors and analysts in the defense industry.
In other recent news, Huntington Ingalls Industries (HII) has undergone significant strategic restructuring, transitioning its Mission Technologies division from six to four specialized operational groups. This move follows a period of substantial financial growth, with revenues reaching $2.7 billion in 2023 and $1.5 billion in the first half of 2024. The company's third-quarter earnings are expected to continue this upward trend.
HII also reported a record second-quarter revenue of $3 billion for 2024 and an increase in diluted earnings per share to $4.38. Moreover, HII secured an expanded credit facility of $1.7 billion. However, the company faced a downgrade from Wolfe Research due to labor difficulties and increased costs.
China's foreign ministry imposed sanctions on HII, freezing their assets within China in response to U.S. arms sales to Taiwan. In contract news, HII has been awarded a $75 million task order by the U.S. Navy for advanced integrated training systems and a $458 million contract to modernize the U.S. Department of Defense's IT networks. TD Cowen maintained its Buy rating on HII, while JPMorgan shifted its rating from "Overweight" to "Neutral".
Lastly, HII named John Bell as the new chief technology officer (CTO) for its Mission Technologies division, a move aimed at bolstering the company’s technological advancements in defense. These are the recent developments for Huntington Ingalls Industries.
InvestingPro Insights
Huntington Ingalls Industries' recent dividend increase aligns with its strong track record of shareholder returns. According to InvestingPro data, HII has raised its dividend for 12 consecutive years, demonstrating a consistent commitment to rewarding investors. The company's current dividend yield stands at 2.05%, which may be attractive to income-focused investors.
Despite the positive dividend news, it's worth noting that 3 analysts have revised their earnings downwards for the upcoming period, as per an InvestingPro Tip. This could suggest some near-term challenges or uncertainties in the company's outlook.
However, HII's financial metrics paint a picture of a stable company. With a P/E ratio of 13.6 and a PEG ratio of 0.3 for the last twelve months as of Q2 2024, the stock appears to be trading at a relatively low valuation compared to its earnings growth potential. This is further supported by another InvestingPro Tip indicating that HII is trading at a low P/E ratio relative to near-term earnings growth.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 6 more tips available for HII on the platform.
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