Northrop Grumman Corporation
) has increased its quarterly dividend by 11% bringing the
annualized payout to $2.44 per share from $2.20 per share
The quarterly dividend, after the hike, will come to 61 cents per
share, up from the prior payment of 55 cents per share. The
increased quarterly dividend will be payable on Jun 12, 2013, to
shareholders of record as on May 28, 2013. With the current
annual dividend of $2.20 per share, the company generates a
dividend yield of 3.07%.
This is the tenth consecutive annual increase in Northrop
Grumman's quarterly dividend. Its prior dividend increase was
made in May 2012. Last time, the company had increased its
quarterly dividend by 10% to 55 cents per share from its previous
payout of 50 cents per share.
Northrop has continuously focused on its cash deployment strategy
via dividend payouts and share repurchases. During the first
quarter of 2013, the company repurchased 6.5 million shares of
its common stock for approximately $456 million. Currently, the
company has share repurchase authorization of $1.0 billion.
Indeed, Northrop Grumman's strong balance sheet and cash flows
provide substantial financial flexibility and a cushion through
an incremental dividend, ongoing share repurchases and earnings
In Mar 2013, its close peer
General Dynamics Corporation
) also increased the quarterly dividend by 9.8% to 56 cents per
share culminating in an annual dividend of $2.24 per share.
Northrop's product line is well positioned in high priority
categories, such as defense electronics, unmanned aircraft and
missile defense. Revenue and earnings growth continue to be
driven by its strong presence in the current focus areas of cyber
security, modernization of defense and homeland security assets,
intelligence, surveillance and reconnaissance systems, advanced
electronics and software development.
Last month, Northrop Grumman reported first quarter 2013 earnings
that easily surpassed the Zacks Consensus Estimate and were also
higher than the year-ago figure. The significant upside in
earnings was attributable to a lower share count and strong
The company presently retains a short-term Zacks Rank #2 (Buy).
Other stocks worth considering are
Erickson Air-Crane Incorporated
Wesco Aircraft Holdings, Inc.
). While Erickson Air-Crane carries a Zacks Rank #1 (Strong Buy),
Wesco Aircraft holds a Zacks Rank #2 (Buy).
ERICKSON AIR-CR (EAC): Free Stock Analysis
GENL DYNAMICS (GD): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
WESCO AIRCRAFT (WAIR): Free Stock Analysis
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