L-3 Communications Holdings Inc. (LLL) boosted its quarterly dividend 14% to 40 cents a share, joining a host of companies in recent weeks that have been boosting dividends.
The company, which has contracts for services such as training foreign militaries and upgrading government aircraft, attributed the increase to confidence in its financial and operational strength.
Higher dividend payments contrast with the numerous cuts that were seen throughout most of 2009 as businesses looked for a way to slash costs. L-3, however, increased its dividend a year ago by 17% to 35 cents, and maintained that payment throughout the rest of the year.
Last week, L-3 reported its fourth-quarter profit fell 14% as gains in the year-earlier results masked revenue and margin improvements. The company also lifted its 2010 earnings and revenue forecasts.
Shares were recently up 2.7% to $86.90 amid a broad market rally.
-By John Kell, Dow Jones Newswires; 212-416-2480; email@example.com