HEICO Corporation (HEI): A Steady Dividend Growth Play in Aerospace
Key Takeaways
- HEICO Corporation (HEI) offers a modest current dividend yield of 0.09% with an annual payout of $0.24 per share.
- The company pays dividends semi-annually, with the most recent ex-dividend date on January 5, 2026, and payment on January 20, 2026.
- HEICO has raised its dividend for 18 consecutive years, reflecting a commitment to shareholder returns amid robust growth.
- Extremely low payout ratio of approximately 4.7% indicates high sustainability, supported by strong free cash flow generation.
- Annual free cash flow reached $861 million in fiscal 2025, easily covering dividends and funding acquisitions.
- Modest yield suits growth-oriented investors rather than high-income seekers.
Understanding HEICO's Dividend Approach
HEICO Corporation (HEI), a key player in aerospace, defense, and electronics components, follows a dividend policy that emphasizes steady growth over high yields. The current annual dividend is $0.24 per share, yielding 0.09% at recent stock prices around $272. Dividends are distributed semi-annually, with the latest $0.12 per share payment after the ex-dividend date of January 5, 2026. From what I see, this setup makes HEICO a classic dividend growth stock, where management prioritizes reinvesting in high-margin aftermarket parts and acquisitions rather than large payouts. Over the past five years, the dividend has increased at an average annual rate of about 8.45%, which signals confidence in expanding cash flows within the aerospace sector.
HEICO's Track Record on Dividend Growth
One thing that stands out about HEICO is its long history of dividend reliability—paying semi-annual dividends uninterrupted for over 40 years and raising them for 18 straight years. Looking at recent years, the progression has been consistent: $0.10 per share in 2023 (across two payments), $0.11 in 2024, and $0.12 in 2025-2026, representing a 9% year-over-year increase. This aligns with the company's focus on compounding earnings through dominance in niche replacement parts markets. Over the past decade, the dividend per share has grown at a 12% compound annual growth rate (CAGR), backed by operating margins above 25% and steady revenue from its Flight Support Group.
Why HEICO's Dividend Looks Sustainable
In my view, HEICO's dividend sustainability is rock-solid, with a trailing twelve-month payout ratio of just 4.7%—distributing only a small portion of its $5.05 EPS (TTM). This provides plenty of flexibility for future growth and acquisitions. Free cash flow coverage is particularly strong, as fiscal 2025 FCF reached $861 million, far exceeding the roughly $30 million in annual dividends across its share count. Debt is manageable at $2.5 billion total, with a net debt-to-EBITDA ratio of about 1.8x and interest coverage over 8x, supported by robust operating cash flows. These figures give me confidence in the dividend's resilience, even during aerospace sector cycles.
How HEICO Stacks Up Against Peers
Within the aerospace and defense space, HEICO's 0.09% yield is notably lower than its peers. For comparison, Lockheed Martin (LMT) provides around 2.2% with a 64% payout, Northrop Grumman (NOC) about 1.3%, RTX approximately 1.4%, and General Dynamics near 2%. Growth-focused peers like TransDigm Group (TDG) offer no dividend at all, opting for buybacks instead. I also checked this using Tickeron’s AI Screener to see how HEI compares to others in the industry. HEICO's approach reflects its growth-at-a-reasonable-price profile, with high multiples driven by strong returns on capital—making it more suitable for total return seekers than yield-focused investors in a sector where averages hover at 1-2%.
Spotting Opportunities with Tickeron's AI Screener
I rely on Tickeron’s AI Screener quite a bit in my analysis—it's an AI-powered tool for discovering stocks and ETFs by filtering on technical patterns, fundamentals, trends, volatility, and AI signals. It lets you scan thousands of assets with custom filters like industry, market cap, technical indicators, price patterns, and performance metrics. Whether I'm hunting dividend growers, income plays, or breakout candidates in aerospace, it streamlines the process far better than manual methods. If you're digging into similar stocks, it's worth exploring to find those under-the-radar opportunities.
Does HEICO Fit Your Dividend Strategy?
HEICO Corporation (HEI) stands out for dividend growth investors who value compounding over current income, thanks to its 18-year increase streak and 4.7% payout ratio that leaves room for more hikes. I'm watching this closely for long-term holders in aerospace, as FCF growth should sustain payouts amid rising defense budgets and commercial travel recovery. That said, the 0.09% yield provides little immediate income, which may not suit conservative investors or retirees preferring higher yields from names like LMT or RTX. For growth-oriented portfolios, HEICO's reinvestment model adds value, though acquisition-related debt and sector volatility call for caution. Balanced approaches might combine it with higher-yield peers for better diversification.
Disclaimer
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HEI in upward trend: price rose above 50-day moving average on May 06, 2026
HEI moved above its 50-day moving average on May 06, 2026 date and that indicates a change from a downward trend to an upward trend. In of 54 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The 10-day moving average for HEI crossed bullishly above the 50-day moving average on May 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 23 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where HEI advanced for three days, in of 338 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 280 cases where HEI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for HEI moved out of overbought territory on June 01, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where HEI's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on June 11, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HEI as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for HEI turned negative on June 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HEI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HEI broke above its upper Bollinger Band on May 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HEI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.930) is normal, around the industry mean (10.573). P/E Ratio (60.575) is within average values for comparable stocks, (91.147). Projected Growth (PEG Ratio) (3.103) is also within normal values, averaging (4.096). Dividend Yield (0.001) settles around the average of (0.019) among similar stocks. P/S Ratio (9.737) is also within normal values, averaging (39.170).
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General Information
a manufacturer of aerospace products and services
Industry AerospaceDefense
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