HEICO Corporation (HEI) will raise its semi-annual dividend by 12.5 percent to 9 cents per share in 2021. This is the first dividend hike since a 14.3 percent to $0.08 per share was announced in the first quarter of 2020. This marks 15 consecutive years dividend increases by the defense company.
The cash dividend is payable on July 15, 2021 to shareholders of record as of July 1, 2021. This cash dividend represents HEICO’s 86th consecutive semi-annual cash dividend since 1979. A new annualized dividend rate of 18 cents per share yields 0.1% at a stock price of $148.71.
Laurans A. Mendelson, HEICO’s Chairman and Chief Executive Officer, along with HEICO’s Co-Presidents, Eric A. Mendelson and Victor H. Mendelson, commented, “This dividend recognizes HEICO’s strong cash flow generation, coupled with our confidence in the future, including for a sustained commercial air travel recovery. Further, as is the case for all HEICO shareholders, the vast majority of HEICO’s Team Members will directly benefit from the dividend increase through their share ownership and we are deeply grateful for our Team Members’ outstanding efforts, especially during the COVID-19 Pandemic.”
Considering the impact of cash dividends, prior stock splits and stock dividends, one share of HEICO worth $8.38 in 1990 has become worth on a combined basis approximately $5,361, representing an increase of approximately 640 times the 1990 value and a compound annual growth rate of approximately 24% as of June 4, 2021.
HEICO Corporation is engaged primarily in the design, production, servicing and distribution of products and services to certain niche segments of the aviation, defense, space, medical, telecommunications and electronics industries through its Hollywood, Florida-based Flight Support Group and its Miami, Florida-based Electronic Technologies Group. HEICO's customers include a majority of the world's airlines and overhaul shops, as well as numerous defense and space contractors and military agencies worldwide, in addition to medical, telecommunications and electronics equipment manufacturers. HEICO was originally formed in 1957 as Heinicke Instruments to design and sell laboratory equipment. The company went public in 1960 and has paid a dividend every year since 1979.