On Friday, January 23, 2026, the Board of Directors of L3Harris Technologies, Inc. (NYSE: LHX) announced a quarterly dividend increase from $1.20 to $1.25 per share. The dividend will be payable on March 20, 2026, to shareholders of record as of March 6, 2026. This represents a 4.17% increase over the prior quarterly dividend.
Current Dividend Yield and Income Impact
At yesterday’s closing price of $354.73, this dividend increase raises L3Harris Technologies’ forward dividend yield to approximately 1.41%. While the yield is modest, LHX remains attractive for investors seeking dividend growth backed by a high-quality defense business.
As an owner of 15 shares of L3Harris Technologies, this increase adds $2.24 to my projected annual net dividend income. I was expecting a roughly 3% increase, so this announcement came in slightly higher than expected, which I am happy to accept.
Long-Term Dividend Growth Track Record
L3Harris Technologies is a Dividend Contender with a 24-year streak of dividend increases, demonstrating a long-standing commitment to returning capital to shareholders. According to Dividend Champions data, the company’s dividend growth rates are as follows:
1-year: 3.4%
3-year: 2.3%
5-year: 7.1%
10-year: 9.5%
This increase marks the third consecutive dividend raise I’ve received from L3Harris since initiating my position in September 2023. Over that period, LHX’s quarterly dividend has grown from $1.14 to $1.25 per share, representing a 9.65% increase.
At the time of writing, L3Harris represents approximately 0.57% of my portfolio, contributing about 0.20% of my projected annual dividend income. Following this increase, my yield on cost stands at 2.96%.
Quick Valuation Take
At current levels, L3Harris Technologies appears fairly valued to modestly expensive based on historical multiples. The market continues to assign a premium to LHX due to its strong competitive position, government-backed revenue streams, and long-term defense spending tailwinds. While not a bargain, the valuation is reasonable for a high-quality dividend growth holding.
Dividend Safety and Outlook
LHX’s dividend appears very well covered, supported by strong free cash flow, long-term defense contracts, and a conservative payout ratio. The company’s long dividend growth streak and stable end markets provide confidence in the sustainability of the dividend and the potential for continued, albeit moderate, growth.
Final Thoughts
This dividend increase reinforces L3Harris Technologies’ role as a reliable dividend growth holding within my portfolio. While the current yield is relatively low, the combination of stability, growth, and dividend safety makes LHX a solid long-term investment.
Summary of 2026 Dividend Increases / Cuts
Full Disclosure: Long LHX
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