Huntington Ingalls Industries (HII) DIvidends Date & History

Key Takeaways

• Huntington Ingalls Industries offers a forward dividend yield of 1.53%, paid quarterly at $1.38 per share.
• The payout ratio stands at 35.28%, indicating strong sustainability with ample earnings coverage.
• The company has raised its dividend for 13 consecutive years, reflecting a commitment to shareholder returns.
• TTM free cash flow of $794 million comfortably covers the annual dividend obligation of approximately $217 million.
• Next ex-dividend date is May 29, 2026, with shares outstanding at 39.38 million.
• In the defense sector, HII's yield is competitive alongside peers like LMT (2.1%) and RTX (1.5%).

Dividend Overview

Huntington Ingalls Industries, America's largest military shipbuilder, maintains a modest dividend profile with a forward yield of 1.53% and an annual payout of $5.52 per share, distributed quarterly at $1.38. The next ex-dividend date is May 29, 2026. This positions HII as a dividend growth stock rather than a high-yield play, emphasizing steady increases over yield maximization. With trailing EPS of $15.40, the dividend is well-supported, appealing to investors seeking reliable income from the defense sector.

Dividend History and Growth

Huntington Ingalls Industries has paid dividends consistently since 2014, with a 13-year streak of annual increases. The quarterly dividend has grown from lower levels to the current $1.38, reflecting a compound annual growth rate of around 5% over recent years, with higher rates over longer periods (up to 12% over 60 months). No cuts have occurred, underscoring the company's long-term strategy of returning capital to shareholders amid stable defense contracts.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is robust, with a payout ratio of 35.28% based on trailing earnings, leaving significant room for growth or reinvestment. TTM free cash flow reached $794 million, far exceeding the annual dividend payout of roughly $217 million (based on 39.38 million shares), providing over 3x coverage. While 2024 free cash flow dipped to $26 million due to timing in operations and capex, 2025 rebounded strongly to $794 million with operating cash flow of $1.196 billion. Solid profitability (profit margin 4.85%) and a manageable debt profile further support ongoing payments.

Dividend Compared to Industry Peers

In the aerospace and defense sector, HII's 1.53% yield is in line with peers. RTX offers 1.50%, while LMT provides 2.10% with a higher payout ratio around 48%. Compared to GD and others, HII's lower payout ratio signals potentially greater growth potential, though its yield is modest relative to some high-payers in the group. This makes it attractive for those prioritizing coverage over maximum yield.

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Is This Stock Attractive for Dividend Investors?

Huntington Ingalls Industries may appeal to dividend growth investors valuing a 13-year streak of increases and a low 35% payout ratio that supports future hikes. Conservative income seekers could appreciate the quarterly payouts backed by strong TTM free cash flow and defense sector stability, though the 1.53% yield is modest compared to higher-yielding peers. Long-term holders might find value in the company's position as the U.S. Navy's primary shipbuilder, potentially driving earnings growth amid rising defense budgets. However, cyclical shipbuilding revenues and recent FCF volatility warrant monitoring. Overall, it suits patient investors prioritizing sustainability over high current income, but not aggressive yield chasers.

Disclaimer

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