General Dynamics Corporation
) has increased its dividend by 9.8%, bringing the annualized
dividend to $2.24 per share from the previous payout of $2.04 per
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis
L-3 COMM HLDGS (LLL): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
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General Dynamics will now pay a quarterly dividend of 56 cents
per share compared with the prior quarterly dividend of 51 cents
per share. The dividend will be paid on May 10, 2013, to
shareholders of record at the close of business on Apr 12, 2013.
This is the sixteenth dividend increase made by the company. The
last quarterly dividend hike of 4 cents was made in March last
year taking the dividend to 51 cents. The current dividend payout
brings the annual dividend yield to 3.31%.
Apart from increasing dividends, the company continues to return
value to shareholders through share buybacks. In 2012, the
company repurchased 9.1 million shares in the open market. At the
end of 2012, 10.9 million shares remained authorized for
Other disciplined capital deployment followed by the company
includes internal investment and acquisitions and divestitures.
The company has used $8.9 billion of cash generated from
operating activities over the past three years to fund
acquisitions and capital expenditures, repurchase its common
stock, pay dividends and repay maturing debt.
Based in Falls Church, Virginia, General Dynamics is a market
leader in business aviation; land and expeditionary combat
systems, armaments and munitions; shipbuilding and marine
systems; and information systems and technologies. The company's
revenue exposure is spread over a broad portfolio of products and
services that is expected to keep the overall growth momentum
However, we prefer to remain on the sidelines due to the
uncertainty related to the defense budgets and U.S debt
situation. The company presently retains a short-term Zacks Rank
#3 (Hold). In the near term, we would advise investors to
accumulate its short-term Zacks #2 Ranked (Buy rating) peer
Lockheed Martin Corporation
Other big names in the industry are also focusing on returning
shareholder wealth. In Dec 2012,
The Boeing Company
) raised its quarterly dividend by 10% to 48.5 cents per share
from the previous payout of 44 cents per share. The hike raised
Boeing's annualized dividend per share to $1.94 versus the
Later, in Feb 2013,
L-3 Communications Holdings Inc.
) had increased its dividend as well as announced a new share
repurchase program. L-3 Communications increased its quarterly
dividend by 10%, bringing the annualized dividend to $2.20 per
share from the previous payout of $2.00 per share. As per the new
share repurchase program, the company is permitted to repurchase
up to an additional $1.5 billion of the company's common stock
through Jun 30, 2015.