L3Harris Technologies, Inc. (NYSE:LHX) stock is about to trade ex-dividend in 4 days. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, L3Harris Technologies investors that purchase the stock on or after the 7th of March will not receive the dividend, which will be paid on the 22nd of March.
The company's upcoming dividend is US$1.16 a share, following on from the last 12 months, when the company distributed a total of US$4.56 per share to shareholders. Last year's total dividend payments show that L3Harris Technologies has a trailing yield of 2.2% on the current share price of US$209.81. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether L3Harris Technologies has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. L3Harris Technologies is paying out an acceptable 70% of its profit, a common payout level among most companies. A useful secondary check can be to evaluate whether L3Harris Technologies generated enough free cash flow to afford its dividend. It paid out more than half (53%) of its free cash flow in the past year, which is within an average range for most companies.
It's positive to see that L3Harris Technologies's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
When earnings decline, dividend companies become much harder to analyse and own safely. If earnings fall far enough, the company could be forced to cut its dividend. That's why it's not ideal to see L3Harris Technologies's earnings per share have been shrinking at 2.5% a year over the previous five years.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, L3Harris Technologies has increased its dividend at approximately 12% a year on average. That's interesting, but the combination of a growing dividend despite declining earnings can typically only be achieved by paying out more of the company's profits. This can be valuable for shareholders, but it can't go on forever.
Final Takeaway
Is L3Harris Technologies worth buying for its dividend? It's never good to see earnings per share shrinking, but at least the dividend payout ratios appear reasonable. We're aware though that if earnings continue to decline, the dividend could be at risk. It's not that we think L3Harris Technologies is a bad company, but these characteristics don't generally lead to outstanding dividend performance.
With that in mind though, if the poor dividend characteristics of L3Harris Technologies don't faze you, it's worth being mindful of the risks involved with this business. Our analysis shows 3 warning signs for L3Harris Technologies that we strongly recommend you have a look at before investing in the company.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
What do analysts say about L3Harris Technologies? L3Harris Technologies's analyst rating consensus is a Moderate Buy. This is based on the ratings of 12 Wall Streets Analysts.
The stock price drops by the amount of the dividend on the ex-dividend date. Remember, the ex-dividend date is the day before the record date. If investors want to receive a stock's dividend, they have to buy shares of stock before the ex-dividend date.
The 13 analysts with 12-month price forecasts for LHX stock have an average target of 234.31, with a low estimate of 210 and a high estimate of 250. The average target predicts an increase of 12.62% from the current stock price of 208.06.
Another important note to consider: as long as you purchase a stock prior to the ex-dividend date, you can then sell the stock any time on or after the ex-dividend date and still receive the dividend. A common misconception is that investors need to hold the stock through the record date or pay date.
Valuation metrics show that L3Harris Technologies Inc may be undervalued. Its Value Score of B indicates it would be a good pick for value investors. The financial health and growth prospects of LHX, demonstrate its potential to outperform the market. It currently has a Growth Score of C.
The L3Harris Technologies stock prediction for 2025 is currently $ 233.54, assuming that L3Harris Technologies shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 12.08% increase in the LHX stock price.
If you buy a stock one day before the ex-dividend, you will get the dividend. If you buy on the ex-dividend date or any day after, you won't get the dividend. Conversely, if you want to sell a stock and still get a dividend that has been declared, you need to hang onto it until the ex-dividend day.
No, you won't get the dividend if you sell before the ex-date, because you would not be recorded as an investor entitled to dividends on the record date. You'll need to hold the shares until the ex-date or later to receive the payout.
Largest shareholders include Vanguard Group Inc, BlackRock Inc., Capital World Investors, Price T Rowe Associates Inc /md/, State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, AWSHX - WASHINGTON MUTUAL INVESTORS FUND Class A, Wells Fargo & Company/mn, VFINX - Vanguard 500 Index Fund ...
L3Harris Technologies, Inc.'s ( LHX ) dividend yield is 2.3%, which means that for every $100 invested in the company's stock, investors would receive $2.30 in dividends per year. L3Harris Technologies, Inc.'s payout ratio is 70.74% which means that 70.74% of the company's earnings are paid out as dividends.
The ex-dividend date is the first day the stock trades without its dividend, thus ex-dividend. If you want to get the dividend payment, you need to own the stock by this day. That means you have to buy before the end of the day before the ex-dividend date to get the next dividend. In other words, it's the cut-off date.
When it comes to investing for dividends, there are three key dates that everyone should memorize. The three dates are the date of declaration, date of record, and date of payment.
Many investors will immediately sell a stock after it decides to cut its dividend, but we do our best to get out before the reduction is made. We gauge the risk of a dividend cut by analyzing a company's most important financial metrics (payout ratios, debt levels, recent earnings growth, etc.).
L3Harris has an employee rating of 3.7 out of 5 stars, based on 3,655 company reviews on Glassdoor which indicates that most employees have a good working experience there.
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L3Harris ranked seventh among its peers in the global Aerospace and Defense category; the company has ranked on the prestigious list each year since its formation in mid-2019. “This recognition is further proof L3Harris is a trusted, innovative organization among global industry peers,” said Christopher E.
Introduction: My name is Kelle Weber, I am a magnificent, enchanting, fair, joyous, light, determined, joyous person who loves writing and wants to share my knowledge and understanding with you.
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