After another strong year generating free cash flow and pretty much more of the same expected in 2012, L-3 Communications [LLL] Tuesday evening said it will increase its quarterly cash dividend by 11 percent, marking the eighth consecutive annual dividend increase by the company.
The quarterly dividend, payable on March 15 to shareholders of record at the close of business on March 1, will go from 45 cents per share to 50 cents.
In 2011 L-3 returned $188 million to shareholders through dividend payments and repurchased $958 million in shares, a 13 percent increase in total cash returned to shareholders versus 2010.
“Delivering value is our long-standing strategy, and we are pleased to increase the yield and affirm our outlook for L-3’s continued solid performance in this challenging environment,” Michael Strianese, L-3’s chairman, president and CEO, said in a statement.
Separately, the company said it has completed its $210 million purchase of the Kollmorgen Electro-Optical unit of Danaher Corp. [DHR], giving it additional capabilities in electro-optics and infrared technology products (Defense Daily, Dec. 14, 2011).
L-3 in December announced its agreement to acquire Kollmorgen and said the deal would be immediately accretive to its operating results. Kollmorgen is expected to have sales this year between $160 million and $170 million.