HEICO Corporation (NYSE: HEI) announced on June 15 that it is raising its semiannual cash dividend by 8%, lifting the payout to $0.13 per share from $0.12.
The dividend will be paid on July 15 to shareholders of record as of July 1, continuing a streak that now spans close to five decades.
The increase marks HEICO’s 96th consecutive semiannual cash dividend since 1979, a record of uninterrupted payouts that few industrial companies can match.
The announcement followed record fiscal second-quarter 2026 results, with net income climbing 49% year-over-year to $233.8 million, while earnings per share rose to $1.66 from $1.12.
Revenue grew 25% year-over-year and operating income climbed 41%, with both metrics hitting all-time highs during the quarter.
Cash generation was equally strong, with operating cash flow rising 43% year-over-year to $292 million and EBITDA increasing 37% to $408.3 million.
The Flight Support Group was a key driver of the quarter’s performance, posting revenue of $929.4 million, up 21% year-over-year, with operating income up 31% and margins improving to 26.2%.
Despite the 8% dividend hike, HEICO’s yield remains modest at roughly 0.07%, with a forward payout ratio of just 4.23%, suggesting significant runway for continued dividend growth.
The stock carries a premium valuation, trading at a forward price-to-earnings multiple of 58.2 times, well above the industrials sector average of 21 times.
Analysts project earnings of $1.46 per share for the July quarter, up from $1.26 a year ago, representing approximately 16% year-over-year growth.
Estimates for the October quarter stand at $1.52 per share versus $1.33 a year ago, reflecting 14% year-over-year growth, with full fiscal year 2026 earnings projected at $5.78, up 18% from $4.90.
Following the strong quarterly results, Jefferies analyst Sheila Kahyaoglu raised her price target on HEI to $410 from $375, maintaining a “Buy” rating and citing strong margins and steady execution.
The broader aerospace and defense sector has provided a supportive backdrop, with the U.S. government targeting a $1.5 trillion defense budget for 2027 and the private aerospace and defense sector generating nearly $1 trillion in annual revenue.
Peers including Northrop Grumman, RTX, and Curtiss-Wright each raised their own dividends in May 2026, by 7%, 7%, and 8% respectively, reinforcing a sector-wide commitment to shareholder returns even amid geopolitical uncertainty.
