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!