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L3 Technologies Is A Dividend Grower That Will Become The Sixth Largest Defense Contractor

Published Thu, 31 Jan 2019 11:45:34 -0500 on Seeking Alpha

I have focused on stocks with a decent income and a growing dividend over time with the potential for capital appreciation. In this article, I discuss L3 Technologies Inc. (LLL), which has a dividend yield > ~1.6% and a growing dividend for the past 14 years. The company has positive momentum in the context of beating revenue and EPS estimates in the past five quarters. Furthermore, the company is merging with Harris Corporation (HRS) in an all-stock deal forming L3 Harris Technologies as a catalyst for future growth. However, the market has largely recognized L3's recent good operating and financial performance and the potential synergies in the merger, thus I am not a buyer at this time.
L3 Technologies Is One Of The Ten Largest Defense Contractors

Source: youtube.com
L3 Technologies Is A Leader In Defense ISR, Electronics, and Communications
L3 Technologies is a leading provider of defense communication and electronics systems. The company was formed in 1997 to acquire business units from Lockheed Martin (LMT) that had previously been a part of Loral Corporation. L3 Technologies has grown rapidly through a combination of organic growth and acquisitions. Today, the company has a market capitalization of over $15B and annual revenue of ~$10B making it one of the ten largest defense contractors. The company generates approximately 69% of its sales from the U.S. Department of Defense, prime contractors, and other government agencies. The... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
LOCKHEED MARTIN 386.63   18.8 20.52 8.80 2.31
BOEING 375.63   44.0 8.54 8.22 2.22
GENERAL DYNAMICS 189.41   16.8 11.25 4.08 2.17
RAYTHEON 197.45   18.2 10.87 3.77 1.95
NORTHROP GRUMMAN 365.22   19.5 18.72 5.28 1.49
HARRIS 189.46   25.4 7.45 2.74 1.40


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