Harris Boosts Payout; Receives New Contracts
Harris Corp. (NYSE: HRS – $122.90) said that its board of directors has increased the quarterly cash dividend by 8% to $0.57 per share from $0.53, payable Sept. 22 to shareholders of record Sept. 8. The annualized cash dividend correspondingly increases to $2.28 per share from $2.12 yielding 1.9% at current quotations. “The increased dividend reflects confidence in our ability to generate strong cash flow and our commitment to drive value for our shareholders,” said William M. Brown, chief executive officer. “We expect 2018 to be a growth year and remain confident in our long-term outlook.” Separately, Harris said The U.S. General Services Administration has selected the company for the 15-year, $50 billion ceiling, multiple-award Enterprise Infrastructure Solutions contract. The contract, awarded during the first quarter of Harris’ fiscal 2018, has a 5-year base period with two five-year options. In addition, BAE Systems has selected Harris’ advanced electronic warfare transmitter technology to help protect the U.S. Air Force Special Operations AC/MC-130J aircraft from electronic threats. Aircraft like the AC/MC-130J fly at low-altitude and spend extended periods in hostile territory, exposing special operators to a wide range of lethal threats.
The shares have advanced 32% over the past year to a new record. I continue to like Harris for its strong leadership in government communications and advanced electronic and aviation systems.