Northrop Grumman to Buy Back $2 Billion in Shares (NOC)

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Defense contractor Northrop Grumman Corporation ( NOC ) on Thursday unveiled a new $2 billion share buyback plan.

The company's repurchase plan of up to $2 billion represents around 11% of its current market capitalization.

"Today's increase in our share repurchase authorization demonstrates our continuing commitment to a balanced cash deployment strategy that drives value creation by investing for the future, managing risk, and distributing cash to shareholders through share repurchases and dividends," said CEO Wes Bush.

Northrop Grumman shares rose 91 cents, or +1.5%, in premarket trading Thursday.

The Bottom Line
We have avoided shares of NOC since our early June 2008 coverage began, when the stock was trading at $71.70. The company has a dividend yield of 3.08%, based on last night's closing stock price of $61.08. The stock has technical support in the $55-$57 price area. If the shares can firm up, we see overhead resistance around the $65-$66 price levels. We would remain on the sidelines for now.

Northrop Grumman Corporation ( NOC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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