Huntington Ingalls: An Undervalued Dividend Growth Play With Defense Dominance

Summary

• Huntington Ingalls, a major American defense company (operating as the largest independent military shipbuilder), is now a $7.5 billion (by market cap) military mammoth.
• HII increased its dividend for 13 consecutive years, with a 10-year dividend growth rate of 25.9%.
• The company increased its revenue from $7 billion in FY 2014 to $11.5 billion in FY 2023, a compound annual growth rate of 5.7%.
• With multiple years of revenue already baked in, the balance sheet is stronger than it looks.

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