L3Harris dividend: payment and coverage
MyStockButler's October 2026 analysis: L3Harris recently raised its dividend from $4.80 to $5.00 per share. In 2025, free cash flow reached $2,682 million, and dividends plus buybacks used 76.7% of it, so reported free cash flow covered those shareholder payments.
How much does L3Harris pay per share?
The dividend rises gradually to $5.57 per share in the base case. The bear holds at $5.00 because investment, debt and the subsidiary’s preferred dividend take priority; the bull reaches $5.72 if cash conversion improves. The base follows the recent increase from $4.80 to $5.00 and the stated 35%–40% free-cash-flow payout framework, while management gives no assurance of future increases.
| Jan 2026 | Jan 2025 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 8.53 | 7.87 | 6.44 | 5.49 | 9.09 |
| Real free cash flow per share | 13.64 | 10.77 | 8.17 | 9.29 | 10.91 |
| − Dividends paid, per share | 4.79 | 4.65 | 4.55 | 4.47 | 4.02 |
| − Share buybacks, per share | 6.13 | 2.91 | 2.72 | 5.60 | 18.09 |
What this means. The company's own free cash flow per share is higher than our real free cash flow per share because our count also subtracts the value of shares given to employees as pay.
Does L3Harris's cash cover its dividend?
Free cash flow is the money left after normal operations and capital spending on equipment and facilities. Across 2021–2025, L3Harris generated $10,731 million of free cash flow and returned $11,322 million through dividends and buybacks. Asset sales and borrowing therefore helped fund shareholder payments.
By 2025, the direction had improved. Free cash flow reached $2,682 million, while dividends and buybacks used 76.7% of it. Net debt fell to $10,047 million, and annual net interest expense declined from $675 million to $597 million. Debt reduction is working; the returns from acquisitions and new factories remain to be proved.
| Jan 2026 | Jan 2025 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,682 | 2,151 | 1,647 | 1,906 | 2,345 |
| − Dividends paid | 903 | 886 | 868 | 864 | 817 |
| − Share buybacks | 1,154 | 554 | 518 | 1,083 | 3,675 |
| Paid to shareholders | 2,057 | 1,440 | 1,386 | 1,947 | 4,492 |
| Paid out, % of free cash flow | 76.7% | 66.9% | 84.2% | 102.2% | 191.6% |
What this means. Our net debt is four million dollars higher than the company's own figure for January 2025 because we include four million dollars of finance-lease borrowings held for sale that the company leaves out.
What could change L3Harris's dividend?
The view would move toward bear if 2027–2028 appropriations delay backlog conversion, if missile ramp costs or adverse EAC changes cut margins, or if expansion and delayed-IPO financing restrict debt reduction and repurchases.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,547 (2,350 / 2,726) | 2,858 (2,444 / 3,196) | 3,196 (2,632 / 3,760) |
| Shares (millions) | 184 (186 / 183) | 183 (187 / 180) | 181 (188 / 176) |
| Dividends per share | 5.15 (5.00 / 5.20) | 5.36 (5.00 / 5.45) | 5.57 (5.00 / 5.72) |
| Price to earnings | 19.00 (15.00 / 23.00) | 19.50 (15.00 / 23.00) | 19.50 (15.00 / 23.00) |
What this means. The numbers in brackets are alternative lower and higher outcomes, not extra amounts added to the base forecast.
What is L3Harris's dividend yield today?
EV/EBITDA, which stood at 15.1x on October 16, 2026, adds back depreciation and amortization. Free cash flow is the necessary counterweight because factories and rocket-motor facilities require cash. The dividend is paid from that cash, so its 2.0% yield cannot simply be added to the 5.8% free cash flow yield.