L-3 Lifts Quarterly Dividend 13%; 7th Straight Annual Increase

   DOW JONES NEWSWIRES 
 

L-3 Communications Holdings Inc. (LLL) raised its quarterly dividend 13%, the seventh consecutive annual increase by the contractor of services such as training militaries and upgrading government aircraft.

The company boosted its quarterly dividend to 45 cents from 40 cents, an increase that will cost an additional $23 million a year. Last year, L-3 lifted the dividend 5 cents, or 14%.

The announcement came a day after L-3 initiated an offer to buy back one of its series of notes with an aggregate value of $650 million.

Companies have been looking for ways to spend excess cash now that the recession has waned. Many companies have found uses for the cash in such capacities as paying down debt, buying back stock or implementing or raising dividends.

Last month, L-3 reported its fourth-quarter profit climbed 18%, topping the company's own outlook, as sales, margins and funded orders increased. It also raised its earnings view for the year.

Shares rose 1.3% to $80.36 in recent trading. The stock is up 14% this year.

-By John Kell, Dow Jones Newswires; 212-416-2480; [e-mail]