Leidos Holdings (LDOS) DIvidends Date & History

Key Takeaways

• Leidos Holdings (LDOS) provides a forward dividend yield of 1.15% with an annual payout of $1.72 per share.
• The company pays quarterly dividends of $0.43 per share, with the next ex-dividend date on June 15, 2026, and payment on June 30, 2026.
• A low payout ratio of 14.6% indicates strong sustainability, well-covered by earnings and free cash flow (FCF).
• LDOS has increased its dividend for 8 consecutive years, reflecting consistent growth.
• Robust FCF of $1.11 billion (trailing twelve months, levered) supports ongoing dividend payments.
• Modest yield appeals to conservative investors in the stable defense and IT services sector.

Dividend Overview

Leidos Holdings, Inc. (LDOS), a leading provider of defense, intelligence, and health IT solutions, maintains a modest quarterly dividend policy. The current forward annual dividend is $1.72 per share, yielding approximately 1.15% based on recent stock prices. Payments occur every three months, with the most recent declaration of $0.43 per share on May 1, 2026. This positions LDOS as a dividend growth stock rather than a high-yield play, emphasizing sustainability over aggressive payouts amid its government contract-driven revenue stability.

Dividend History and Growth

Leidos Holdings initiated regular quarterly dividends around 2013 and has demonstrated consistency since. The company has raised its dividend for 8 consecutive years, with recent increases including a hike to $0.43 per share. Over the past five years, it has increased the payout four times at an average annual growth rate of about 3.42%. No cuts have been recorded in recent history, underscoring a long-term strategy of steady, albeit modest, dividend progression tied to earnings growth in its core sectors.

Dividend Sustainability and Payout Ratio

LDOS's dividend sustainability is robust, supported by a trailing payout ratio of 14.6%, meaning only a fraction of earnings is distributed, leaving ample room for reinvestment and growth. Earnings per share (EPS) trailing twelve months stand at $11.13, providing over 7x coverage for the annual dividend. Free cash flow (FCF, the cash generated after capital expenditures) reached $1.11 billion levered over the trailing twelve months, easily covering total dividend obligations. Debt-to-equity ratio of 107.66% is manageable given predictable government revenues, further bolstering payout confidence.

Dividend Compared to Industry Peers

In the government IT services and defense sector, LDOS's 1.15% yield is modest but competitive. Peer Science Applications International Corp. (SAIC) offers 1.54%, while Booz Allen Hamilton (BAH) provides a higher 2.8%. CACI International (CACI) pays no dividend, focusing on growth. LDOS's lower payout ratio gives it an edge in sustainability compared to higher-yielding peers, appealing to those prioritizing safety over maximum income.

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Is This Stock Attractive for Dividend Investors?

Leidos Holdings (LDOS) suits conservative dividend investors who prioritize stability and low risk over high yields. Its modest 1.15% payout, backed by a single-digit payout ratio and strong FCF generation, offers reliable quarterly income from a defensive business model reliant on long-term U.S. government contracts. Those seeking dividend growth may appreciate the 8-year streak of increases, though at a measured pace suitable for long-term holders rather than yield chasers. Income-focused portfolios in the defense sector could benefit from LDOS's financial discipline, but high-yield seekers might look elsewhere. Overall, it fits balanced strategies emphasizing coverage and consistency amid sector tailwinds like increased defense spending.

Disclaimer

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