L3Harris Technologies (LHX -0.29%) is best known today as a major defense contractor, delivering advanced systems across space, air, land, sea, and cyber domains. Its portfolio includes cutting-edge technologies such as autonomous platforms and missile warning and defense networks. That modern focus, however, grew out of a history that spans more than 130 years, beginning with something far simpler: sheet feeders for printing presses.
While L3Harris is a major defense contractor, it's also committed to the civilian sector. Even after selling its commercial aviation solutions unit in early 2025, the company continues to serve non-defense industries, including maritime drones for energy applications and rocket engines for space exploration.
For investors considering L3Harris Technologies stock, key factors include how to buy shares, the company’s profitability, its dividend policy, and potential alternative investments.
How to buy L3Harris Technologies stock
Follow these basic steps:
- Open your brokerage account: Log into your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for L3Harris Technologies: Enter the ticker "LHX" 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 you 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.
NYSE: LHX
Key Data Points
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.
How to invest in L3Harris through ETFs
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 -0.32%), 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)
For investors more drawn to the company's focus on the final frontier, the ARK Space Exploration & Innovation ETF (ARKX -0.59%) may be a more attractive option. The ETF, which typically has between 35 and 55 holdings, focuses on companies operating in various capacities throughout space.
As of October 2025, L3Harris had a 7.4% weighting in the portfolio. The ARK Space Exploration & Innovation ETF has a 0.75% expense ratio.
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.
The bottom line
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.
Related investing topics
FAQ
Investing in L3Harris FAQ
About the Author
