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Leidos raises dividend to $0.40 a share

Published 25/10/2024, 21:22
LDOS
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RESTON, Va. - Leidos Holdings , Inc. (NYSE:LDOS), a Fortune 500 technology company, has announced an increase in its quarterly cash dividend. The company's Board of Directors declared a dividend of $0.40 per outstanding share of common stock, marking a $0.02 rise from the previous dividend of $0.38 per share.

The new dividend is scheduled for payment on December 31, 2024, to shareholders who are on record as of December 16, 2024. This decision reflects a continuation of the company's practice of returning value to its shareholders.

Leidos, with a global workforce of 48,000, focuses on providing innovative solutions in national security and health sectors, catering to customers in highly regulated industries. The company, which is based in Reston, Virginia, reported annual revenues of approximately $15.4 billion for the fiscal year that ended on December 29, 2023.

The dividend increase is a part of the company's financial developments and is based on a press release statement. Stockholders may view this as a positive signal of the company's financial health and commitment to sharing profits.

This financial move comes as Leidos continues to navigate the complexities of the technology and defense sectors, aiming to maintain its position in the market and deliver on its strategic objectives.

This announcement is relevant for investors and market watchers, as dividend payouts are often a reflection of a company's performance and its management's confidence in the future. It is important to note that past performance is not necessarily indicative of future results, and investors should consider a wide range of factors when evaluating the potential of a stock.

Leidos has not provided further details on the financial strategies or future projections in the press release. The information presented is based solely on the press release statement from Leidos Holdings, Inc.

In other recent news, Leidos, a Fortune 500 innovation company, reported a notable 7.7% increase in year-over-year revenue, totaling $4.13 billion. The company also saw a significant 33% rise in adjusted EBITDA, reaching $559 million. Leidos has secured several substantial contracts, including a $331 million deal for modernizing the U.S. Army's network infrastructure, a $249 million contract for enhancing security at Army installation access points, and a $303 million contract from the Department of the Air Force for the management of the Advanced Battle Management System. Additionally, Leidos has been appointed as the exclusive vendor to provide an Electric Vehicle Charging as a Service (EV CaaS) solution to the Department of Defense and other U.S. government entities. Truist Securities upgraded its price target for Leidos, suggesting potential value from its existing portfolio. On the leadership front, Leidos has appointed Leslie Fautsch as its new chief human resources officer and Thomas J. Downey as the new Executive Vice President and Chief Communications and Marketing Officer. These are all recent developments, reflecting the company's robust performance and strategic focus.

InvestingPro Insights

Leidos Holdings' recent dividend increase aligns with its strong financial performance and commitment to shareholder value. According to InvestingPro data, the company has maintained dividend payments for 13 consecutive years and has raised its dividend for 5 consecutive years. This consistency in dividend growth is particularly noteworthy given Leidos' impressive market performance, with a 86.98% price total return over the past year and a 57.21% return year-to-date.

The company's robust financial health is further evidenced by its revenue growth of 7.86% over the last twelve months, reaching $16.01 billion. This figure surpasses the $15.4 billion reported for the fiscal year ended December 29, 2023, indicating continued expansion. Additionally, Leidos boasts a healthy EBITDA margin of 11.87% and an operating income margin of 9.97%, demonstrating efficient operations and profitability.

InvestingPro Tips highlight that Leidos is trading near its 52-week high, with the current price at 98.47% of its peak. This, coupled with the company's strong returns over various time frames, suggests investor confidence in Leidos' business model and growth prospects. The company's position as a prominent player in the Professional Services industry, particularly in national security and health sectors, appears to be translating into solid financial performance.

For investors seeking more comprehensive analysis, InvestingPro offers 14 additional tips for Leidos Holdings, providing deeper insights into the company's financial health and market position. These additional tips can be valuable for those looking to make informed investment decisions in the technology and defense sectors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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