The Dynamic Dividend

Harris Posts Solid Q4, Lifts Dividend and Buyback Plan

Harris Corporation (HRS) reported fourth quarter results that met Wall Street’s expectations after today’s closing bell. The company also raised its dividend for the tenth consecutive year, announced a new buyback program, and gave strong 2012 earnings guidance, sending shares higher in extended trading.

Harris earned $1.24 per share on $1.67 billion in revenue, matching the consensus profit view while edging the average sales estimate of $1.64 billion.

Looking ahead, the communications and IT company expects to earn an adjusted $5.10 to $5.30 per share during its 2012 fiscal year on $6.15 to $6.30 billion in revenue. The average analyst forecast currently calls for a profit of just $5.16 per share, albeit on sales of $6.38 billion.

Harris declared a quarterly dividend of $0.28 per share within the release, which is a 12% improvement over the $0.25 it had paid each of the previous four quarters. The company has now given its shareholders a double-digit raise in ten consecutive years, boosting its payout by an absurd 1,020% during the streak.

Harris also announced a new $1 billion share buyback program, which will replace its old plan (and its remaining balance of roughly $200 million). Harris aims to use as much as half of the new authorization by the end of the calendar year. At the current share price, that would mean buying more than 10% of the company’s shares outstanding in less than five months.

Shares of HRS popped to $40.04 (+5.42%) in extended trading, where they now yield 2.80%.