), a leading professional communications and public safety
service provider, announced its decision to significantly raise
its shareholders' wealth. The board of directors has decided to
hike its quarterly divided by 13.5% from 37 cents per share to 42
cents per share. The annualized cash dividend rate is now $1.68
The new dividend will be payable on Sep 24, 2013 to
shareholders of record as of Sep10, 2013. This is the twelfth
consecutive annual dividend increase by Harris.
Additionally, the board of directors also decided to authorize
a new $1 billion share buy-back program. This new share
repurchase program is in addition to the existing share buy-back
program for which $62 million of authorized amount is still left.
The company expects to repurchase up to $200 million in shares in
fiscal 2014 (started from Jul 2013).
Management stated that the company is quite confident
regarding its future growth. Harris generated strong free cash
flow in fiscal 2013 (approximately $668.2 million, up 3.9% year
over year). Recently, the company won a $960 million deal from
the U.S. Air force Network-Centric Solutions-2 (NETCENTS-2)
Application Services. The contract can be extended for an
Other Stocks to Consider
Harris currently carries a Zacks Rank #2 (Buy). Other stocks
in the professional communications and information technology
industry which are also doing well include
Ubiquiti Networks Inc.
Aruba Networks Inc.
Mitel Networks Corp.
). While Ubiquiti currently carries a Zacks Rank #1 (Strong Buy),
both Aruba and Mitel have a Zacks Rank #2 (Buy).
ARUBA NETWORKS (ARUN): Free Stock Analysis
HARRIS CORP (HRS): Free Stock Analysis Report
MITEL NETWORKS (MITL): Free Stock Analysis
UBIQUITI NETWRK (UBNT): Free Stock Analysis
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