HEICO announces 93rd consecutive semiannual dividend

HOLLYWOOD, FL - HEICO Corporation (NYSE:HEI.A)(NYSE:HEI), an aerospace and electronics company, has declared a semiannual cash dividend of $0.11 per share for both its Class A Common Stock and Common Stock. This marks the company's 93rd consecutive semiannual dividend since 1979, underscoring its consistent financial performance. According to InvestingPro data, HEICO has maintained dividend payments for 49 consecutive years and has raised its dividend for 7 consecutive years, with a 10% dividend growth in the last twelve months. The dividend is set to be paid on January 17, 2025, to shareholders on record as of January 3, 2025.

The company's leadership, including Chairman and CEO Laurans A. Mendelson and Co-Presidents Eric A. Mendelson and Victor H. Mendelson, expressed confidence in HEICO's ongoing success and growth prospects. Their optimism appears well-founded, with the company achieving a remarkable 43.13% revenue growth in the last twelve months and maintaining strong financial health with a 3.3x current ratio. They also highlighted the company's commitment to its team members, who will receive the dividend through their HEICO 401K plan accounts, in recognition of their contributions to the company's achievements.

In addition to the dividend announcement, HEICO's Board of Directors has scheduled the next annual meeting of shareholders for March 14, 2025. Shareholders registered by January 17, 2025, will be eligible to vote on agenda items at the meeting.

HEICO Corporation operates primarily within niche segments of the aviation, defense, space, medical, telecommunications, and electronics industries. Its customer base includes the majority of the world's airlines, overhaul shops, defense and space contractors, military agencies, and manufacturers in the medical, telecommunications, and electronics sectors.

The company's forward-looking statements indicate a cautious but optimistic outlook, acknowledging potential risks and uncertainties that could impact future results. These include public health threats like the COVID-19 pandemic, changes in commercial air travel, and various economic conditions. While HEICO's stock has delivered an impressive 47.08% return year-to-date, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors seeking deeper insights can access comprehensive valuation analysis and 13 additional ProTips through the Pro Research Report, available exclusively to InvestingPro subscribers.

This dividend declaration and the announcement of the annual meeting are based on a press release issued by HEICO Corporation and reflect the company's current financial strategies and shareholder engagement practices.

In other recent news, HEICO Corporation has been actively expanding its portfolio through strategic acquisitions. The company's subsidiary, Exxelia, has acquired a 70% stake in SVM Private Limited, a company specializing in electronic passive components. HEICO also announced the acquisition of an 88% interest in Mid Continent Controls, Inc., a provider of in-cabin power and entertainment systems for business jets. Further, the company secured a 92.5% share in Marway Power Solutions, Inc., known for its power distribution solutions. These acquisitions are expected to contribute positively to HEICO's earnings within the next year.

HEICO's recent financial results have shown significant growth, with a 45% increase in consolidated operating income and a 37% rise in net sales in the third quarter of 2024. The company's net income reached a record $136.6 million, indicating a 34% growth.

Analysts from various firms have responded positively to these developments. Truist Securities raised the price target for HEICO shares to $282, while Deutsche Bank (ETR:DBKGn) increased its price target from $235.00 to $271.00. UBS initiated coverage on HEICO shares with a Neutral rating, citing the company's distinctive Parts Manufacturer Approval business model. These are the recent developments in HEICO's business trajectory.

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