DOW JONES NEWSWIRES
L-3 Communications Holdings Inc. (LLL) raised its quarterly
dividend 13%, the seventh consecutive annual increase by the
contractor of services such as training militaries and upgrading
government aircraft.
The company boosted its quarterly dividend to 45 cents from 40
cents, an increase that will cost an additional $23 million a year.
Last year, L-3 lifted the dividend 5 cents, or 14%.
The announcement came a day after L-3 initiated an offer to buy
back one of its series of notes with an aggregate value of $650
million.
Companies have been looking for ways to spend excess cash now
that the recession has waned. Many companies have found uses for
the cash in such capacities as paying down debt, buying back stock
or implementing or raising dividends.
Last month, L-3 reported its fourth-quarter profit climbed 18%,
topping the company's own outlook, as sales, margins and funded
orders increased. It also raised its earnings view for the
year.
Shares rose 1.3% to $80.36 in recent trading. The stock is up
14% this year.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com