L3 Technologies Inc Announces 14th Consecutive Annual Dividend Hike
LLL Stock Raises Dividend by Seven Percent
L3 Technologies Inc (NYSE:LLL) might not be a familiar name to most income investors. But over the years, the company has been consistently raising its payout.
L3 Technologies is in the defense industry. It provides a wide range of communication, electronic and sensor systems used the military, homeland security, and commercial platforms. At the same time, the company is also a contractor in aerospace systems, security and detection systems, and pilot training.
On Monday, February 12 after the closing bell, L3 Technologies announced that its Board of Directors has declared a quarterly cash dividend of $0.80 per share, representing a seven percent increase from its previous payout. The dividend is payable on March 15, 2018 to shareholders of record as of March 1. (Source: “L3 Technologies Increases Quarterly Dividend,” L3 Technologies Inc, February 12, 2018.)
Note that since L3 Technologies started paying dividends in 2004, the company has raised its payout every single year. That’s 14 consecutive years of annual dividend increases! (Source: “Dividends & Stock Splits,” L3 Technologies Inc, last accessed February 12, 2018.)
“Our 14th consecutive annual dividend increase underscores the Board’s continued confidence in our growth strategy and our robust cash flow,” said Christopher E. Kubasik, L3’s President and Chief Executive Officer in a statement on Monday. “We will continue our disciplined approach to grow and invest in the company to increase shareholder value, including returning cash through quarterly dividends.” (Source: Ibid.)
At the new dividend rate, LLL stock offers an annual yield of 1.56%.
The neat part is, even with consistent dividend hikes, L3 Technologies wasn’t really paying out all that much. In 2017, the company generated diluted earnings of $9.46 per share, representing a 20% increase year-over-year. Since it declared and paid total dividends of $3.00 per share for the year, the company had a payout ratio of just 31.7%. (Source: “L3 Announces Fourth Quarter 2017 and Full Year Results,” L3 Technologies Inc, January 25, 2018.)
With growing profits and a low payout ratio, L3 Technologies Inc is well-positioned to continue its track record of dividend increases.
Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners
Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:
5 Dividend Stocks to Own Forever
This is an entirely free service. No credit card required. You can opt-out at anytime.
We hate spam as much as you do.