L3Harris Technologies (LHX) DIvidends Date & History

Key Takeaways

• L3Harris Technologies (LHX) offers a forward dividend yield of approximately 1.56%, paid quarterly at $1.25 per share.
• The company has increased its dividend for 24 consecutive years, reflecting strong commitment to shareholders.
• Payout ratio stands at around 56%, indicating solid earnings coverage for the $5.00 annual dividend.
• Adjusted free cash flow of $2.8 billion supports dividend sustainability amid robust financial performance.
• Yield is competitive with peers like RTX at 1.57% and below Lockheed Martin (LMT) at ~2.7%.
• Next ex-dividend date is June 5, 2026, with payment on June 26, 2026.

Dividend Overview

L3Harris Technologies, a leading aerospace and defense contractor, maintains a consistent quarterly dividend policy. The current quarterly dividend is $1.25 per share, equating to an annualized $5.00. At a recent stock price of around $320, this delivers a forward yield of 1.56%. Recently increased from $1.20, the payout underscores the company's focus on returning capital to shareholders. LHX qualifies as a dividend growth stock rather than a high-yield play, prioritizing steady increases over elevated yields. Payments occur every three months, with the latest declaration on April 23, 2026, for the June payment. This profile appeals to investors seeking reliable income with moderate growth in the defense sector.

Dividend History and Growth

L3Harris Technologies has a robust dividend history, paying dividends since 1999 and achieving 24 consecutive years of increases as of 2026. The quarterly rate rose from $1.20 to $1.25 earlier this year, boosting the annual payout from $4.80 to $5.00—a roughly 4% hike. Over the past five years, dividends have grown at an average annual rate of about 6.3%. This streak reflects a long-term strategy of balancing reinvestment in high-margin defense programs with shareholder returns. No cuts have occurred in decades, supported by stable government contracts and operational efficiency.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of approximately 56% based on trailing twelve-month earnings per share (EPS) of $8.54. This leaves ample room for growth and reinvestment. Free cash flow (FCF) coverage is strong, with adjusted FCF reaching $2.8 billion in the latest full year, up 21% year-over-year. Debt levels are manageable in the capital-intensive defense industry, and profitability metrics like a 10.4% profit margin bolster confidence. Earnings growth projections and a book-to-bill ratio of 1.3x further support ongoing coverage, positioning LHX well for continued payouts.

Dividend Compared to Industry Peers

In the aerospace and defense sector, LHX's 1.56% yield is competitive. Peer RTX Corporation (RTX) matches closely at 1.57%, while Lockheed Martin (LMT) offers a higher ~2.7%. General Dynamics (GD) and Northrop Grumman (NOC) also hover around 1.5-2%, aligning with the industry average of roughly 1.96%. LHX's 24-year growth streak and lower payout ratio give it an edge in reliability over higher-yielding peers, though it trails top payers like LMT in absolute yield.

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Is This Stock Attractive for Dividend Investors?

L3Harris Technologies may suit dividend growth investors valuing long-term consistency, given its 24-year streak and moderate 6%+ annual increases. Income-oriented portfolios could appreciate the reliable quarterly payouts and defense sector stability, backed by multi-year government contracts. Conservative investors might favor the sub-60% payout ratio and strong FCF, offering a buffer against cyclical risks. However, the modest 1.56% yield may not excite high-yield seekers, and sector exposure to geopolitical shifts and budget constraints warrants caution. Long-term holders prioritizing quality over flash could find LHX's profile balanced, especially amid rising global defense spending. Suitability depends on individual risk tolerance and portfolio needs.

Disclaimer

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