Monday, August 25, 2014

Harris Corporation (HRS) Increases the Dividend

This morning Harris Corporation (HRS) announced an increase in the quarterly dividend.  The payment increased from $0.42 to $0.47 or 11.9%.  The new dividend rate is payable on September 23rd to shareholders of record as of September 9th.  This increase is now the 13th consecutive year of increasing the dividend.  The new dividend would be a 38.7% payout ratio based off the analyst estimate of $4.86 EPS for FY 2015 which leaves plenty of room for future growth.  Even better is that the FCF payout ratio using the new payment is only at 31.9% based on FY 2013's FCF numbers of $5.89 per share.  Click here to see the press release.

Since I own 82.506 shares of HRS this increased my annual dividends by $16.50 and increases my YOC to 4.01%.  Dividend growth investing in action!!!

My forward 12-month dividends are now $4,983.31 which is 99.67% of the way towards my goal of $5,000 by the end of the year.  A couple more dividend increases or another purchase and I'll pass my goal.  With 4 full months left in the year I'll smash my original goal and have to set a new one.  Great problem to have!

3 comments:

  1. Nice increase. 12% is a great growth. That will easily cover the inflation. I love dividends.

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  2. JC,

    I wish I would have bought more HRS back in the day. It's been one of my best and most consistent investments thus far.

    Glad to be a fellow shareholder. And even more glad to collect more income!! :)

    Best wishes.

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  3. Very nice increase. You can't ever complain about a stock that increases its dividend >10%. If you and DM are on board, maybe I'll have to join the b andwagon as well. It is nice to see that the payout ratio is relatively low and there is plenty of room to grow the dividend going forward. Great dividend growth is critical for the stocks below 3%.

    Thanks for sharing the stock. It is not one that was on my radar.

    Bert, One of the Dividend Diplomats

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