Huntington Ingalls Industries (HII) DIvidends Date & History

Key Takeaways

• HII offers a current dividend yield of approximately 1.40%, with an annual dividend of $5.52 per share paid quarterly.
• The company has raised its dividend for 13 consecutive years, achieving a 5-year growth rate of 5.12%.
• Payout ratio stands at 35-38% of earnings, indicating strong sustainability backed by robust free cash flow (FCF) of $800 million in 2025.
• FCF comfortably covers dividends multiple times over, with FY26 guidance of $500-600 million supporting ongoing payments.
• Debt-to-equity ratio of 0.58 reflects manageable leverage, enhancing dividend reliability in the defense sector.
• HII appeals to conservative income investors seeking consistent growth amid rising defense budgets.

Dividend Overview

Huntington Ingalls Industries (HII), America's largest military shipbuilder, maintains a reliable quarterly dividend policy. The current annual dividend is $5.52 per share, equating to $1.38 quarterly, with the most recent ex-dividend date on February 27, 2026, and payment on March 13, 2026. This yields about 1.40% at recent stock prices around $394. HII qualifies as a dividend growth stock, with steady annual increases since 2013, averaging over 5% growth in the past five years. While not a high-yield play, its modest yield is supported by stable U.S. Navy contracts for aircraft carriers and submarines, positioning it well for long-term income in the aerospace and defense sector.

Dividend History and Growth

HII initiated dividends post its 2011 spin-off from Northrop Grumman, starting small at $0.20 annually in 2012. Growth accelerated rapidly: $0.60 in 2013 (200% increase), $1.20 in 2014 (100%), and $1.80 in 2015 (50%). Subsequent raises have been more measured but consistent—$2.20 (2016), $2.64 (2017), up to $5.30 (2024) and $5.52 projected for 2025/2026, reflecting quarterly hikes like from $1.35 to $1.38. This marks a 13-14 year consecutive increase streak, with no cuts. The long-term strategy emphasizes returning capital via dividends and repurchases, backed by a $50+ billion backlog of shipbuilding contracts.

Dividend Sustainability and Payout Ratio

HII's dividend is highly sustainable, with a trailing payout ratio of 35.91%—well below 75%, leaving ample room for growth or reinvestment. In 2025, diluted EPS reached $15.39, easily covering the $5.52 dividend. Free cash flow surged to $800 million in 2025 from $40 million prior, providing over 10x coverage for annual dividends (roughly $77 million for ~14 million shares). Debt-to-equity is a conservative 0.58, with long-term debt steady at $2.7 billion. FY26 FCF guidance of $500-600 million further bolsters confidence, despite capex for shipyards. Earnings from Newport News and Ingalls segments ensure stability.

Dividend Compared to Industry Peers

HII's 1.40% yield is competitive yet lower than some defense peers. LMT offers 2.2-2.25%, GD 1.8-1.9%, NOC 1.37%, and RTX 1.35%. The sector average hovers around 1.5-2%, with HII's profile standing out via its lower payout ratio (36% vs. LMT's 64%) and similar growth streak to leaders like GD (34 years). As a pure-play shipbuilder, HII trades at a forward P/E of ~22x, cheaper than peers' 25-38x, appealing for value amid naval expansion priorities.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It excels at identifying dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener today to uncover hidden gems like high-yield defense plays.

Is This Stock Attractive for Dividend Investors?

HII suits conservative dividend growth investors prioritizing reliability over ultra-high yields. Its 13-year streak and low 36% payout ratio signal commitment to steady raises, ideal for those building long-term income portfolios. The defense contractor's $53 billion backlog—driven by Virginia-class submarines and Ford-class carriers—provides earnings visibility, shielding against cyclical downturns. Strong 2025 FCF ($800 million) and improving cash conversion support sustainability, even with shipyard capex. Debt levels are moderate (0.58 debt/equity), outperforming pricier peers like LMT. However, its 1.40% yield may underwhelm yield chasers, and execution risks in complex builds could pressure margins. Balanced investors valuing defense tailwinds from geopolitical tensions and U.S. Navy modernization will find HII a solid, low-volatility holding, though stock price appreciation has compressed yields recently.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.