L3Harris Maintains Dividend Momentum Amid Defense Tech Growth

L3Harris Technologies (NYSE: LHX) has reaffirmed its commitment to shareholder returns with its latest dividend announcement. The defense technology leader declared a quarterly dividend of $1.20 per common share, payable on June 18, 2025, to shareholders of record as of June 3, 2025. This marks the company’s 24th consecutive annual dividend increase, underscoring its financial discipline and strategic focus on rewarding investors.

Dividend Details: A Steady Hand in Volatile Markets

The dividend hike, first announced in February 2025, boosts L3Harris’s annualized payout to $4.80 per share, a 3.4% increase from the prior year’s $4.64. At the time of the announcement, L3Harris’s stock price supported an annualized yield of 2.2%, a competitive rate in an aerospace and defense sector where peers often hover around 1.5–2.0%.

The ex-dividend date of June 2, 2025, is critical for investors. Shares purchased on or after this date will exclude buyers from eligibility for the upcoming dividend. Historically, dividend stocks like L3Harris often see temporary price dips on ex-dividend dates, but the company’s long track record of growth may mitigate such volatility.

Financial Strength and Strategic Priorities

L3Harris’s dividend policy is underpinned by a 23-year streak of uninterrupted annual increases, a testament to its robust cash flow and balance sheet management. While the payout ratio (dividends relative to earnings) reached 74.34% in 2024, the company’s leadership has emphasized sustaining this rate through cost discipline and high-margin contracts. CEO Christopher E. Kubasik highlighted this in a February 2025 statement:

> "This dividend increase represents our 24th consecutive annual dividend increase and is part of our plan to prioritize the return of cash to shareholders."

The firm’s role as a “Trusted Disruptor” in defense innovation—spanning space systems, cyber defense, and next-gen combat tech—has solidified its position as a critical supplier to U.S. and allied militaries. This strategic advantage, paired with rising global defense spending, positions L3Harris to sustain earnings growth, even in uncertain macroeconomic environments.

Stock Performance and Valuation Considerations

L3Harris’s stock has navigated market turbulence well, benefiting from geopolitical tailwinds and its niche technological capabilities.

As of early 2025, the stock’s forward dividend yield of 2.06% (based on 2024 data) had already begun rising, aligning with the announced 2025 payout. Analysts note that the company’s low debt levels (debt-to-equity ratio of ~0.5x) and recurring defense contracts provide a stable foundation for future dividend hikes.

Conclusion: A Reliable Dividend Play in a High-Growth Sector

L3Harris’s dividend announcement reinforces its status as a dividend stalwart in the aerospace and defense sector. With a 24-year dividend growth streak, a payout ratio managed to ensure sustainability, and a product portfolio critical to national security, the company offers investors a compelling blend of income and capital appreciation potential.

Key data points to the firm’s durability:
- Dividend Yield: 2.2% (annualized, as of April 2025), outperforming sector averages.
- Payout Ratio: 74% (2024), within sustainable bounds given its high-margin business.
- Growth Consistency: 8.66% dividend growth over three years, reflecting steady earnings expansion.

Investors seeking stability in a volatile market would be well-served to consider L3Harris, particularly ahead of its June 2025 ex-dividend date. Its role as a defense technology leader, coupled with disciplined capital allocation, positions it to thrive as global defense spending trends upward.