Northrop Grumman (NOC) DIvidends Date & History

Key Takeaways

• Northrop Grumman offers a current dividend yield of 1.39%, paid quarterly at $2.31 per share, equating to an annual payout of $9.24.
• The company has raised its dividend for 22 consecutive years, with a recent 12% increase and a 10% compound annual growth rate (CAGR) over the past decade.
• Payout ratio stands at approximately 31%, indicating strong sustainability supported by robust free cash flow and a record $95.7 billion backlog.
• Latest ex-dividend date was February 23, 2026, with payment on March 11, 2026.
• Compared to defense peers, LMT yields 2.3% and GD around 2%, positioning NOC as a lower-yield but growth-oriented option.
• Low payout and solid earnings coverage make the dividend highly sustainable for conservative income investors.

Dividend Overview

Northrop Grumman Corporation (NOC), a leading aerospace and defense contractor, maintains a disciplined dividend policy characterized by quarterly payments and consistent growth. The current annual dividend is $9.24 per share, yielding 1.39% based on recent stock prices around $665. This modest yield reflects the company's focus on reinvesting in high-margin defense programs while rewarding shareholders reliably. The most recent quarterly dividend of $2.31 was declared in February 2026, with payments demonstrating stability amid a massive backlog. NOC qualifies as a dividend growth stock rather than a high-yield play, appealing to investors seeking compounding income over time supported by government contracts.

Dividend History and Growth

Northrop Grumman has a long track record of dividend payments dating back decades, with no cuts in recent history. The company has increased its dividend for 22 consecutive years, including a 12% hike in early 2026 to $2.31 quarterly. Over the past five years, dividends have grown at a 10.13% CAGR, outpacing inflation and reflecting operational leverage from programs like the B-21 Raider bomber. This streak underscores a long-term strategy prioritizing shareholder returns alongside R&D investments, with annual payouts rising from $2.80 in 2015 to $9.24 today.

Dividend Sustainability and Payout Ratio

NOC's dividend sustainability is robust, with a payout ratio of 30.92% to 31.7% of earnings, leaving ample room for growth and reinvestment. Earnings per share comfortably cover the payout, and free cash flow (FCF) of $2.62 billion in 2024 provides strong coverage—over 3.5 times the annual dividend. A record $95.7 billion backlog offers multi-year revenue visibility, mitigating cyclical risks in defense spending. Debt levels are manageable, and return on invested capital remains solid, supporting ongoing payments even if near-term growth moderates. No red flags indicate near-term vulnerability.

Dividend Compared to Industry Peers

In the aerospace and defense sector, Northrop Grumman's 1.39% yield trails peers like Lockheed Martin (LMT) at 2.33% and General Dynamics (GD) around 2%, while matching RTX at approximately 1.4%. NOC's lower yield reflects its emphasis on growth and buybacks, with a superior dividend growth rate. Peers like LMT boast longer streaks (22+ years), but NOC's payout ratio is among the lowest, signaling potential for future hikes. This positions NOC favorably for growth-oriented investors versus pure yield seekers.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It excels at identifying dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener today to uncover hidden gems in the defense sector and beyond.

Is This Stock Attractive for Dividend Investors?

Northrop Grumman appeals to dividend growth investors prioritizing consistency over high current yields, given its 22-year streak and low 31% payout ratio. Conservative long-term holders may value the stability from a $95 billion backlog and government-backed revenues, which buffer against economic downturns. Income-focused portfolios could allocate modestly, as the 1.39% yield lags peers but compounds reliably at 10%+ annually. Retirees seeking defense exposure might pair it with higher-yield names like LMT. However, growth stock enthusiasts may overlook it for reinvestment potential. Overall, NOC suits patient investors balancing yield, growth, and sector resilience without chasing speculative highs.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations