Huntington Ingalls Industries, Inc. (NYSE:HII) Plans $1.38 Quarterly Dividend

Key Points

• $1.38 quarterly dividend declared (record date May 29, payable June 12), implying a 1.5% yield and $5.52 annualized; the company has raised its dividend for 13 consecutive years and the payout ratio is about 33% (expected ~27% next year).
• HII beat its latest quarter with $4.04 EPS vs. $3.72 expected and revenue of $3.48B (up 15.7% year-over-year), while analysts forecast roughly 17.3 EPS for the current year.
• Shares trade near $362 with a $14.22B market cap and P/E ~23.6; analyst coverage is split (six Buy, six Hold) and the average price target is about $383.22, suggesting modest upside.

Huntington Ingalls Industries, Inc. (NYSE:HII - Get Free Report) declared a quarterly dividend on Wednesday, April 29th. Investors of record on Friday, May 29th will be given a dividend of 1.38 per share by the aerospace company on Friday, June 12th. This represents a c) dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, May 29th.

Huntington Ingalls Industries has increased its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 13 consecutive years. Huntington Ingalls Industries has a dividend payout ratio of 33.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Huntington Ingalls Industries to earn $20.27 per share next year, which means the company should continue to be able to cover its $5.52 annual dividend with an expected future payout ratio of 27.2%.

Huntington Ingalls Industries Price Performance

NYSE HII traded up $0.92 during trading hours on Wednesday, reaching $362.32. The company's stock had a trading volume of 476,454 shares, compared to its average volume of 539,011. The firm has a market capitalization of $14.22 billion, a price-to-earnings ratio of 23.57, a P/E/G ratio of 1.45 and a beta of 0.36. Huntington Ingalls Industries has a 1-year low of $215.04 and a 1-year high of $460.00. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.13 and a quick ratio of 1.06. The company's 50-day moving average is $407.41 and its two-hundred day moving average is $368.60.

Huntington Ingalls Industries (NYSE:HII - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The aerospace company reported $4.04 earnings per share for the quarter, topping analysts' consensus estimates of $3.72 by $0.32. The company had revenue of $3.48 billion during the quarter, compared to analysts' expectations of $3.09 billion. Huntington Ingalls Industries had a return on equity of 12.28% and a net margin of 4.85%.Huntington Ingalls Industries's quarterly revenue was up 15.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.15 EPS. On average, equities analysts predict that Huntington Ingalls Industries will post 17.3 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on HII. Bank of America raised Huntington Ingalls Industries from an "underperform" rating to a "neutral" rating and upped their price target for the stock from $300.00 to $400.00 in a report on Thursday, February 12th. Weiss Ratings raised Huntington Ingalls Industries from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, March 19th. TD Cowen upped their price target on Huntington Ingalls Industries from $440.00 to $460.00 and gave the stock a "buy" rating in a report on Friday, March 6th. Wells Fargo & Company started coverage on Huntington Ingalls Industries in a research note on Wednesday, April 1st. They set an "equal weight" rating and a $400.00 price objective for the company. Finally, Sanford C. Bernstein restated a "market perform" rating and issued a $421.00 target price on shares of Huntington Ingalls Industries in a research report on Wednesday, February 11th. Six investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $383.22.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries NYSE: HII is America's largest military shipbuilding company and a leading provider of professional services to the U.S. government. Headquartered in Newport News, Virginia, HII designs, constructs and maintains nuclear-powered aircraft carriers, submarines and other complex vessels for the U.S. Navy. The company's products include nuclear aircraft carriers, Virginia-class and Columbia-class submarines, as well as amphibious assault ships, destroyers and cutters.

Established in 2011 as a spin-off from Northrop Grumman's shipbuilding operations, HII traces its heritage to two historic builders: Newport News Shipbuilding, founded in the 19th century, and Ingalls Shipbuilding, founded in 1938.

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