MELBOURNE, Fla. - L3Harris Technologies (NYSE:LHX), a company operating in the defense sector, announced that its Board of Directors has approved a quarterly cash dividend. The dividend is set at $1.16 per common share and will be distributed on December 6, 2024, to shareholders who are on record by the close of business on November 18, 2024.
The declaration of this dividend reflects the company's ongoing commitment to deliver value to its shareholders. L3Harris Technologies has a history of providing technology solutions across various domains including space, air, land, sea, and cyber, all with a focus on national security.
The company, known within the defense industry as the "Trusted Disruptor," emphasizes its role in addressing mission-critical needs through its comprehensive technology offerings. L3Harris Technologies has not provided further details on its financial performance or future dividend plans in the press release.
This dividend issuance comes as part of the company's regular financial practices and is a common way for corporations to share profits with their investors. Dividends are typically paid out from a company's earnings, and the amount distributed can be a signal of the company's financial health and its board's confidence in future earnings.
The information regarding the dividend was based on a press release statement from L3Harris Technologies. Investors and shareholders are often attentive to such announcements as they plan their investment strategies and assess the performance of their holdings. While the dividend declaration is a positive event for shareholders, it is just one aspect of the company's overall financial picture.
L3Harris Technologies has not commented on any potential impact this dividend may have on its financial position or on future dividends. The company's stock performance and market activities will continue to be watched closely by investors and market analysts.
In other recent news, L3Harris Technologies has been making significant strides in various sectors. The company has unveiled its new autonomous vehicle system, Diamondback (NASDAQ:FANG), which is designed for reconnaissance and security operations. This development comes alongside an upgrade from Peerperform to Outperform by Wolfe Research, based on strong margin performance and potential for further expansion.
L3Harris has also secured a potentially lucrative contract with the U.S. Navy, worth $587.4 million, for the provision of new tactical jamming pods over the next five years. However, the company did not secure the High Accuracy Detection and Exploitation System contract from the US Army, despite which, Jefferies reiterated a Buy rating for L3Harris.
In financial developments, L3Harris reported a 9% increase in non-GAAP earnings per share for the second quarter of 2024, along with a substantial backlog of $32 billion. Yet, Morgan Stanley downgraded L3Harris's stock from Overweight to Equalweight, citing comparative industry analysis and recent financial developments. These are the recent developments that investors should be aware of.
InvestingPro Insights
L3Harris Technologies' recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for an impressive 54 consecutive years, with 22 years of consecutive dividend increases. This consistency underscores L3Harris' commitment to returning value to shareholders, a key consideration for income-focused investors in the defense sector.
The company's current dividend yield stands at 1.89%, based on the most recent data. While this yield may not be the highest in the market, it's important to note that L3Harris has demonstrated a dividend growth of 1.75% over the last twelve months, indicating a trend of increasing shareholder returns.
From a financial perspective, L3Harris appears to be in a solid position. The company's revenue for the last twelve months as of Q2 2024 was $20.77 billion, with a notable revenue growth of 15.44% over the same period. This growth trajectory supports the company's ability to maintain and potentially increase its dividend payments in the future.
InvestingPro Tips highlight that L3Harris is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation. Additionally, the company is expected to remain profitable this year, which bodes well for its ability to continue its dividend policy.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for L3Harris Technologies, providing a deeper understanding of the company's financial health and market position.
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