Heico Raises Its Dividend

Heico (HEI) announced today that it’s raising its semi-annual dividend from eight to nine cents per share. That’s a tiny part of their earnings, but it’s nice to see anyway. Heico also has an interesting tradition of having frequent yet small stock splits. I count 17 splits since 1995.

Shares of Heico touched a new high today. The stock initially fell after its earnings report even though the numbers were quite good. That’s not uncommon. Traders like to act first and find out the details later.

From the press release:

Laurans A. Mendelson, HEICO’s Chairman and Chief Executive Officer, along with HEICO’s Co-Presidents, Eric A. Mendelson and Victor H. Mendelson, commented, “This dividend recognizes HEICO’s strong cash flow generation, coupled with our confidence in the future, including for a sustained commercial air travel recovery. Further, as is the case for all HEICO shareholders, the vast majority of HEICO’s Team Members will directly benefit from the dividend increase through their share ownership and we are deeply grateful for our Team Members’ outstanding efforts, especially during the COVID-19 Pandemic.”

Considering the impact of cash dividends, prior stock splits and stock dividends, one share of HEICO worth $8.38 in 1990 has become worth on a combined basis approximately $5,361, representing an increase of approximately 640 times the 1990 value and a compound annual growth rate of approximately 24% as of June 4, 2021.

Posted by on June 8th, 2021 at 10:22 am


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