Northrop Grumman (NOC) DIvidends Date & History

Key Takeaways

• Northrop Grumman pays a quarterly dividend with an annual rate of $9.24 and a current yield near 1.8%.
• The company has raised its dividend for 22 consecutive years, establishing a strong growth track record.
• Payout ratio stands at approximately 29%, indicating conservative earnings coverage and sustainability.
• Dividends are well supported by free cash flow and stable defense sector operations.
• The modest yield positions NOC as a dividend growth stock rather than a high-yield income play.
• Recent quarterly increase to $2.47 per share reflects ongoing commitment to shareholder returns.

Dividend Overview

Northrop Grumman Corporation maintains a quarterly dividend policy with payments made four times per year. The current annualized dividend totals $9.24 per share, translating to a yield of about 1.77% based on recent share prices. This places NOC in the category of a dividend growth stock, where the emphasis lies on consistent annual increases rather than maximizing current yield. The payment schedule follows standard quarterly ex-dividend and payment dates, with the most recent ex-dividend date occurring on June 1, 2026. Overall, the dividend profile reflects a conservative approach suited to long-term investors seeking gradual income growth alongside capital appreciation potential in the aerospace and defense sector.

Dividend History and Growth

Northrop Grumman has demonstrated consistent dividend growth over more than two decades. The company has increased its payout annually for 22 consecutive years, with recent annual growth rates averaging around 10% to 12% over the past one to five years. Quarterly dividends have risen steadily, moving from $2.31 to $2.47 per share in the latest adjustment. This long-term streak reflects a deliberate strategy of returning capital to shareholders while retaining earnings for reinvestment in research, development, and acquisitions. No dividend cuts have occurred in recent history, underscoring reliability even through economic cycles affecting the broader industrials sector.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable given Northrop Grumman’s low payout ratio of approximately 29%. This figure indicates that less than one-third of earnings are distributed as dividends, leaving ample room for reinvestment and buffer against earnings volatility. Coverage by free cash flow remains strong, supported by the company’s stable government contracts and diversified defense portfolio. Debt levels are manageable relative to cash generation, and management has historically prioritized dividend growth alongside share repurchases. These factors collectively support expectations for continued payments without undue strain on the balance sheet.

Dividend Compared to Industry Peers

Within the aerospace and defense sector, Northrop Grumman’s dividend yield of roughly 1.8% aligns closely with peers such as Lockheed Martin and RTX Corporation, which also offer modest yields in the 1.5% to 2.5% range. The company’s payout ratio is competitive and often lower than sector averages, signaling a more conservative distribution policy. While not the highest-yielding name in the industry, NOC distinguishes itself through its extended dividend growth streak and solid earnings coverage, appealing to investors who prioritize sustainability over immediate income.

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Is This Stock Attractive for Dividend Investors?

Northrop Grumman may appeal to dividend growth investors seeking moderate income expansion over time rather than high current yields. Its low payout ratio and long history of increases make it suitable for conservative, long-term investors who value stability in the defense sector. Income-focused investors prioritizing higher yields might find the return modest compared to other sectors, while those emphasizing capital preservation and gradual dividend compounding could view it favorably. The stock suits portfolios balancing growth potential with reliable, if not aggressive, dividend distributions. Investors should consider their own time horizon and risk tolerance when evaluating suitability.

Disclaimer

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