Harris Corp. Awarded Contracts
Melbourne, Florida-based Harris Corp. (NYSE: HRS – $82.37), a provider of technology-based solutions, won a five-year, $1.7 billion contract from the Department of Defense to produce radios, ancillaries, spare parts and services for Afghanistan. Separately, Genting Corporate Services HK Ltd. has selected Harris’ CapRock Communications unit to transform communication services onboard its Star Cruises’ fleet of six ships. Star Cruises, based in Hong Kong, is one of the largest cruise lines in the world and is the leading cruise line in the Asia-Pacific region. Under the award, the company will use its technologies and equipment to boost bandwidth by nearly 300% onboard Star Cruises’ fleet using the company’s time divisional multiple access network. Financial terms were not disclosed. Earlier this month, Harris was awarded a four-year, $30 million follow-on contract to provide IT systems and support services to dental clinics that serve U.S. Army, Navy and Air Force personnel and dependents around the world.
I continue to like Harris Corp. for investors willing to accept some risk and believe holdings will likely reward investors on a total return basis. The above average dividend yields 2.5% and appreciation potential to late decade looks worthwhile.