October 31, 2025 a 07:31 am
HII: Dividend Analysis - Huntington Ingalls Industries, Inc.
Huntington Ingalls Industries presents a stable dividend profile with a history of consistent payments and modest growth. Its dividend yield is below 2%, reflecting a focus on capital reinvestment. The payout ratios imply a healthy balance between rewarding shareholders and maintaining financial flexibility.
📊 Overview
Huntington Ingalls Industries operates in the defense sector, known for its stable yet modest dividend returns. The company's ability to sustain a 1.70% dividend yield amidst economic fluctuations is a testament to its robust earnings.
| Metric | Value |
|---|---|
| Sector | Defense |
| Dividend yield | 1.70% |
| Current dividend per share | $5.23 |
| Dividend history | 14 years |
| Last cut or suspension | None |
🗣️ Dividend History
HII's consistent dividend payments over 14 years showcase its commitment to returning value to shareholders. The absence of cuts or suspensions suggests steady cash flow and prudent financial planning.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | $5.43 |
| 2024 | $5.25 |
| 2023 | $5.02 |
| 2022 | $4.78 |
| 2021 | $4.60 |
📈 Dividend Growth
Analyzing dividend growth rates offers insights into future income potential. HII's performance over the last several years highlights sustained growth, albeit modest, providing reassurance to dividend-focused investors.
| Time | Growth |
|---|---|
| 3 years | 4.50% |
| 5 years | 7.78% |
The average dividend growth is 7.78% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are crucial for assessing dividend sustainability. HII manages its payout efficiently, ensuring dividends do not encroach excessively on earnings or free cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 36.11% |
| Free cash flow-based | 24.93% |
The EPS payout ratio of 36.11% and FCF payout ratio of 24.93% signify healthy distribution levels, maintaining ample room for other fiscal responsibilities and reinvestment opportunities.
💧 Cashflow & Capital Efficiency
Understanding the relationship between cash flow and capital efficiency can uncover potential areas of strength or concern. HII's data highlights its commitment to balancing growth investments and sustaining liquid reserves.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.35% | 6.54% | 5.21% |
| Earnings Yield | 7.39% | 6.57% | 6.25% |
| CAPEX to Operating Cash Flow | 93.38% | 30.10% | 37.08% |
| Stock-based Compensation to Revenue | 0.20% | 0.30% | 0.34% |
| Free Cash Flow / Operating Cash Flow Ratio | 6.62% | 69.90% | 62.92% |
The figures demonstrate a strategic approach to managing liquidity and optimizing capital allocations, thereby ensuring financial health and operational efficiency.
📉 Balance Sheet & Leverage Analysis
Assessing leverage and balance sheet stability offers transparency into long-term financial resilience. HII's metrics suggest a balanced approach to debt and equity management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 73.04% | 65.31% | 90.31% |
| Debt-to-Assets | 28.07% | 23.83% | 29.02% |
| Debt-to-Capital | 42.21% | 39.51% | 47.45% |
| Net Debt to EBITDA | 2.42 | 1.73 | 2.28 |
| Current Ratio | 1.08 | 0.95 | 0.95 |
| Quick Ratio | 1.01 | 0.89 | 0.89 |
| Financial Leverage | 2.60 | 2.74 | 3.11 |
HII's leverage ratios reflect a cautious but proactive debt management strategy, ensuring adequate liquidity without compromising growth potentials.
✅ Fundamental Strength & Profitability
Evaluating fundamental health through profitability metrics delves into the company's core financial performance and its potential to maintain or enhance shareholder value.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 11.79% | 16.64% | 16.60% |
| Return on Assets | 4.53% | 6.07% | 5.33% |
| Margins: Net | 4.77% | 5.95% | 5.42% |
| EBIT | 6.40% | 8.28% | 7.69% |
| EBITDA | 9.22% | 11.31% | 11.04% |
| Gross | 12.57% | 14.37% | 13.49% |
| R&D to Revenue | 0.23% | 0.00% | 0.00% |
HII's robust returns and margins point towards solid operational performance, driven by efficient cost management and innovative investments.
📈 Price Development
📊 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 31/40
🗣️ Rating
Huntington Ingalls Industries, Inc. displays a commendable dividend trajectory underscored by reliable payout frequencies and moderate growth. Despite a lower initial yield, the company's ability to maintain continuity and stability enhances its attractiveness to dividend-focused portfolios. Recommended as a potential buy for those seeking steady but modest dividend growth.