Yahoo Finance L-3 Communications (LLL) Hikes Quarterly Dividend by 8%
L-3 Communications Holdings Inc. LLL increased its quarterly dividend payment by 7.7%. The revised quarterly dividend payment will amount to 70 cents against the previous payout of 65 cents.
The hike will bring the annualized payout to $2.80 per share from the previous payout of $2.60. The increased dividend is payable on Mar 15, 2016 to shareholders of record as of Mar 1, 2016.
This marks the 12th consecutive annual hike in dividend by the company, the last one being announced in Feb 2015.
The latest increase in the dividend rate speaks volumes about L-3 Communications’ financial strength. The company’s strong balance sheet provides financial flexibility in matters of incremental dividends and ongoing share repurchases. As of Dec 31, 2015, the company had $207 million in cash and cash equivalents. In Dec 2014, the company’s board of directors approved the repurchase of an additional $1.5 billion of its common stock through second-quarter 2017. The repurchase, which was to be effective immediately, marked the company’s seventh repurchase program. In 2015, the company has repurchased $740 million of its stock and paid $214 million in dividends, returning almost $1 billion in cash in aggregate to its shareholders.
Apart from L-3 Communications, other defense players like The Boeing Company BA, Raytheon Company RTN and General Dynamics Corporation GD have also been making investor-friendly moves. In Dec 2015, Boeing raised its quarterly dividend by 20% to $1.09 per share. The company also increased its share repurchase authorization to $14.0 billion. In Nov 2015, Raytheon’s board of directors approved the repurchase of an additional $2 billion of the company’s common stock. Also, the company bought back 2.0 million shares of its common stock for $250 million during the fourth quarter, bringing its total share repurchase for the year to 9.0 million shares for $1.0 billion. In Dec 2015, General Dynamics’ board of directors approved the repurchase of an additional 10 million shares.
A commitment to deliver value to shareholders will boost their confidence in the company’s future prospects and serve L-3 Communications well over the long haul. It is noteworthy that the company’s shares were up about 0.8% on Tuesday, eventually closing the trading session at $118.15.
The company currently sports a Zacks Rank #1 (Strong Buy).
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