HEICO Rewards Shareholders With a 9% Increase in Dividend

HEICO Corporation HEI recently announced that its board of directors has approved a 9% increase in the dividend rate. The company’s revised dividend will be 12 cents per share, payable on July 15, 2025, to its shareholders of record at the close of business on July 1. 

The recent increase marks the company’s 94th consecutive semi-annual dividend hike since 1979. HEI’s new annualized dividend rate is 24 cents per share, resulting in an annualized dividend yield of 0.08%.

Can HEICO Maintain Its Dividend Hike Streak?

In recent quarters, HEICO has seen an increase in orders for its aftermarket-replacement parts, as well as repair and overhaul parts services. Its Flight Support Group unit is a major supplier, distributor and integrator of military-aircraft components and support services, primarily for the U.S. Department of Defense and foreign military organizations that are allies of the United States. 

A strong U.S. defense budget remains a significant growth driver for HEI. It is imperative to mention that a White House report from May 2025 revealed that President Trump has sought a 13% increase in the nation's defense budget (to $1.01 trillion) for fiscal 2026. Such substantial defense funding should result in significant order flows for HEI's defense products, increasing its revenue-generation possibilities.

A strong cash-distribution strategy is often supported by a company's consistent performance in generating considerable cash flows from its operations. HEICO generated a solid cash flow from operating activities worth $407.7 million during the first half of fiscal 2025, which must have allowed it to approve the current dividend increase.

Its cash and cash equivalents, as of April 30, 2025, totaled $242.3 million, which improved sequentially from $162.1 million and also came in higher than its current debt of $3.8 million. Moreover, its sales witnessed a 14.9% year-over-year increase in the last reported quarter. Such solid cash balance and sales performance are likely to enable HEI to continue to reward its shareholders with valuable dividend hikes.

Other Defense Companies’ Recent Dividend Hikes

Here are some defense companies that have been rewarding shareholders with impressive dividend payouts.

Northrop Grumman Corp. NOC: In May 2025, the company announced that its board of directors approved a 12% increase in the quarterly dividend rate. Its revised quarterly dividend will be $2.31 per share.

NOC boasts a long-term (three to five years) earnings growth rate of 3.3%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 2.8%.

General Dynamics Corp. GD: In March 2025, the company announced that its board of directors had approved a 5.6% increase in the quarterly dividend rate. Its revised quarterly dividend will be $1.50 per share.

GD boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 5.8%.

L3Harris Technologies, Inc. LHX: In February 2025, the company announced that its board of directors approved a 3.4% increase in the quarterly dividend rate. Its revised quarterly dividend is now $1.20 per share.

LHX boasts a long-term earnings growth rate of 12%. The Zacks Consensus Estimate for 2025 sales implies an improvement of 1%.

HEI Stock Price Movement

In the past month, shares of HEI have risen 12.8% compared with the industry’s growth of 8.4%.

HEI’s Zacks Rank

HEICO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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