Communications and advanced technology company Harris Corp. (NYSE: HRS – $163.92) said it increased the quarterly cash dividend by 20% from $0.57 per share to $0.685. The new dividend is payable September 21, 2018, to shareholders of record on September 7 and the annualized cash dividend correspondingly increases from $2.28 to $2.74 per share, yielding 1.67% at current levels. The action represents the company’s 17th consecutive annual dividend increase. In the announcement, management said the increase reflects the company’s continuing ability to generate strong free cash flow and commitment to drive shareholder value.
Defense spending remains favorable and Harris is well positioned to capitalize on healthy demand. Notably, contract wins have been high with all three major branches of the military, which are in the process of major upgrades to their legacy communications equipment. The company’s lineup of tactical communications offerings is competitively positioned in comparison to industry peers and long-term holdings in aggressive accounts remain warranted.