Aware that global tensions show few signs of tapering off anytime soon, investors have taken particular note of defense businesses like L3Harris Technologies (LHX +1.49%), a leading defense contractor offering solutions for space, air, land, sea, and cybermilitary settings.
NYSE: LHX
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The company is now known for its advanced technology that underpins sophisticated solutions, including autonomous systems and missile warning and defense networks. However, L3Harris has a history that stretches back more than 130 years and is grounded in much simpler technology: sheet feeders for printing presses.
While L3Harris is a major defense contractor, it's also committed to the civilian sector. Though it sold its commercial aviation solutions business in early 2025, it still engages in non-defense-related businesses, such as manufacturing maritime drones for the energy industry and rocket engines for space exploration.
There are some important considerations for investors looking to strengthen their holdings with L3Harris Technologies stock. Those include how to buy shares, whether the company is profitable, its dividend structure, and alternative investment opportunities.
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How to buy L3Harris Technologies stock
There are some basic steps to gain exposure to L3Harris, which trades under the stock ticker LHX.
- Open your brokerage account: Log into your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected, and adjust your investment strategy accordingly.
Should I invest in L3Harris?
Several factors can help individuals decide whether scooping up shares of L3Harris is a smart move for them.
For one, investors interested in a defense company that generates passive income will find L3Harris compelling. As of October 2025, L3Harris stock offered a forward yield of 1.6%, and over the past 5 years, L3Harris has averaged a payout ratio of over 64%.
Investors looking to expand their coverage to drone stocks will also find L3Harris attractive. In addition to the drones it manufactures for civilian and commercial customers, L3Harris designs drones for military use.
The company's FVR, for example, is a vertical take-off and landing drone, while the company also has an uncrewed service vehicle (USV) designed for maritime operations. L3Harris received a contract from the U.S. Navy in September 2025 for a surveillance ship focused on submarine detection.
L3Harris is also growing its presence in space, making the company a draw for those seeking exposure to the burgeoning space economy. In addition to the engines it produces for NASA, L3Harris designs and builds satellites for the military. In December 2024, the company reported that the Space Development Agency, a unit of the United States Space Force, had provided it with contract awards for 38 satellites.
Is L3Harris profitable?
L3Harris has consistently generated a profit for the past 30 years.
In the second quarter of 2025, L3Harris reported diluted earnings per share (EPS) of $2.84, up from $1.92 the previous year. regards to 2025, L3Harris foresees continued growth in profits. Management projects 2025 non-GAAP (adjusted) diluted EPS of $10.40 to $10.60.
Does L3Harris pay a dividend?
For the past 23 consecutive years, L3Harris has rewarded shareholders with an increasingly higher dividend. Returning $4.64 in dividends to shareholders in 2024, L3Harris has hiked its dividend at a 10% compound annual growth rate over the past 10 years.
Taking a judicious approach to its dividend, L3Harris has set a target of paying out 35% to 40% of its free cash flow to shareholders.
ETFs with exposure to L3Harris
For investors interested in a broader exposure to defense stocks, a defense exchange-traded fund (ETF) that includes L3Harris among its holdings is a great choice. The iShares U.S. Aerospace & Defense ETF (ITA +2.46%), for example, has L3Harris as its fifth-largest position, with a 4.61% weighting. With a 0.38% expense ratio, the iShares U.S. Aerospace & Defense ETF makes quarterly distributions.
Exchange-Traded Fund (ETF)
Will L3Harris stock split?
Various stocks seem like strong candidates to split their stocks in 2025, but L3Harris probably won't be one of them.
Frequently, companies will decide to split their stocks when the share prices soar to a price that may prevent investors from buying individual shares. With L3Harris trading around $300 in late 2025, it seems unlikely that management will find it advantageous to split the company's stock.
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The bottom line on L3Harris Technologies
For those looking to secure their portfolios with a stalwart defense contractor, L3Harris demands attention. However, it's not only the company's defense expertise that will attract investors.
It is also a great drone stock and a worthwhile space stock. And making it even more alluring, the company's dedication to rewarding shareholders suggests L3Harris is a worthy option for investors targeting an income investment.
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