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FALLS CHURCH, Va. - Northrop Grumman Corporation (NYSE:NOC), a global aerospace and defense technology company with a market capitalization of $68.6 billion, has announced an increase in its quarterly dividend. Shareholders of record by June 2, 2025, will receive a dividend of $2.31 per share on June 18, 2025. This represents a 12 percent increase from the previous dividend, marking the company’s 22nd consecutive annual dividend increase. According to InvestingPro, the company has maintained dividend payments for 55 consecutive years, with a current dividend yield of 1.75%.
Kathy Warden, Northrop Grumman’s chair, chief executive officer, and president, stated, "Reflecting our strong financial position and commitment to deliver value to our shareholders, we are increasing our quarterly dividend by 12 percent." She added, "This marks our 22nd consecutive annual increase and demonstrates our disciplined approach to capital deployment, returning capital to shareholders while investing in innovative solutions for our customers." The company’s financial strength is reflected in its moderate debt levels and strong Altman Z-Score of 3.72, indicating solid financial health.
Northrop Grumman is recognized for providing advanced solutions that support global security, including products and services for air, cyber, land, sea, and space. The company’s emphasis on innovation and technology has positioned it as a leader in the defense sector.
This dividend increase is a reflection of Northrop Grumman’s financial health and its strategy to enhance shareholder returns. The company’s consistent dividend growth is an indicator of its ability to generate profits and effectively manage capital, which can be a point of interest for investors.
The information regarding the dividend increase is based on a press release statement issued by Northrop Grumman Corporation.
In other recent news, Northrop Grumman Corporation’s financial performance has been under scrutiny following its first-quarter earnings report for 2025, which fell short of expectations. The company faced a significant charge related to its B-21 bomber program, impacting its adjusted earnings per share (EPS) and total revenue. RBC Capital Markets responded by lowering Northrop Grumman’s price target to $550, maintaining an Outperform rating, while TD Cowen also reduced its price target to $480, keeping a Hold rating. BTIG adjusted its price target to $575 but retained a Buy rating, indicating confidence in the company’s long-term prospects despite current challenges.
Additionally, Northrop Grumman, along with Lockheed Martin and Peraton, secured a $244 million contract from the U.S. Space Command for the development of the Relay Ground Station. This contract involves designing, procuring, and integrating advanced hardware and software capabilities for space-based systems. In another development, the United States is preparing a substantial arms deal with Saudi Arabia, potentially benefiting defense contractors like Northrop Grumman and Lockheed Martin. The proposed package includes advanced weapons systems, with Northrop Grumman expected to play a significant role.
Despite these opportunities, Northrop Grumman’s financial guidance for 2025 has been revised, with lowered forecasts for EPS and operating income, though revenue and free cash flow projections remain unchanged. The company’s guidance anticipates a strong second half of the year, with sales expected to rise significantly. Analysts caution that any further delays in procurement could affect Northrop Grumman’s performance, potentially leading to adjustments in future guidance.
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