Harris Corporation (HRS): This Stock Has a Lot to Talk About

L-3 saw hedge fund sentiment turn negative going into 2013. At the end of 2012, there were only a total of 14 hedge funds long the stock, a 30% decrease from the previous quarter. The hedge funds dumping the stock include Royal Capital, selling off a $14 million position, and Tigershark Partners, which sold off a position worth $1 million.

By the numbers

Harris pays one of the leading dividend yields amount its peers:

	Harris	Exelis	Motorola Solutions	L-3
Dividend yield	3.4%	3.8%	2.6%	2.7%
Dividend payout	28%	24%	32%	25%

Meanwhile, the company has a solid track record of growing cash flow and returns for shareholders:

	Harris	Exelis	Motorola Solutions	L-3
5-year operating cash flow growth	4.5%	-5%	6%	1%
5-year average return on investment	13.5%	11.6%	0%	8.6%

And currently, Harris has the industry’s top return on assets:

	Harris	Exelis	Motorola Solutions	L-3
Return on assets	10.3%	6.4%	7%	5.3%

Harris Corporation (NYSE:HRS) is quickly inserting itself as one of the top communications equipment companies. What I like about Harris is its solid dividend and impressive ability to generate returns for investors. Unlike other companies in the industry, Harris has less exposure to the government sector and a more diversified end market.

Harris Corporation (HRS): This Stock Has a Lot to Talk About

Published on April 23, 2013 at 3:59 pm by The Motley Fool in News

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