Why L3Harris Technologies (LHX) is Among the Best Performing in 2025 Dividend Stocks

L3Harris Technologies, Inc. (NYSE:LHX) is included among the 15 Best Performing Dividend Stocks So Far in 2025.

L3Harris Technologies, Inc. (NYSE:LHX) is an American defense technology company with operations spanning multiple areas within the defense and aerospace sectors. The stock is up by nearly 36% since the start of 2025, which makes it one of the best performing stocks on our list.

In its earnings report, CFO Kenneth L. Bedingfield highlighted that the company achieved a record $8.3 billion in the quarter, resulting in a book-to-bill ratio of 1.5. Revenue came in at $5.4 billion, reflecting solid organic growth of 6%. He noted that the segment operating margin stood at 15.9%, while non-GAAP EPS reached $2.78. Free cash flow totaled $574 million, supported by higher operating income and stronger working capital performance. As a result, free cash flow guidance was lifted to around $2.65 billion, an increase of $200 million.

Looking ahead to 2026, Bedingfield reaffirmed revenue expectations of $23 billion and projected segment operating margin in the low-16% range. He also raised free cash flow guidance to $3 billion, representing a 13% increase compared to the prior year.

L3Harris Technologies, Inc. (NYSE:LHX) has been growing its dividends for 23 consecutive years and currently offers a quarterly dividend of $1.20 per share. As of September 15, the stock has a dividend yield of 1.71%.

While we acknowledge the potential of LHX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.