May 16, 2026 a 03:31 am
NOC: Dividend Analysis - Northrop Grumman Corporation
Northrop Grumman Corporation, with its robust 45-year dividend history, is a beacon of stability in the defense sector. The current dividend yield is relatively modest at 1.27%, but the company's consistent dividend growth over the years demonstrates its commitment to returning value to shareholders. While the dividend yield might seem low, the growth rate and the company's strategic industry position offer compelling investment qualities. The absence of any recent dividend cuts or suspensions adds to the confidence for potential investors.
📊 Overview
Northrop Grumman Corporation stands as a formidable player in the defense sector, characterized by a reliable dividend profile with 45 years of dividend history and steady growth.
| Parameter | Details |
|---|---|
| Sector | Defense |
| Dividend Yield | 1.27% |
| Current Dividend Per Share | 9.01 USD |
| Dividend History | 45 years |
| Last Cut or Suspension | None |
📈 Dividend History
A 45-year unbroken dividend payment streak positions Northrop Grumman as a reliable dividend payer. The durability of this streak is essential for income-focused investors seeking consistency in payments.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 2.31 |
| 2025 | 8.99 |
| 2024 | 8.05 |
| 2023 | 7.34 |
| 2022 | 6.76 |
📊 Dividend Growth
The growth in dividends is a critical driver for long-term investor returns, showcasing a company's ability to enhance shareholder value.
| Time | Growth |
|---|---|
| 3 years | 9.97% |
| 5 years | 9.66% |
The average dividend growth is 9.66% over 5 years. This shows moderate but steady dividend growth, indicating consistent financial performance.
📈 Payout Ratio
The payout ratio is an essential indicator of the dividend's sustainability. A balanced ratio signifies a company's disciplined approach to distributing earnings.
| Key figure | Ratio |
|---|---|
| EPS-based | 27.98% |
| Free cash flow-based | 38.72% |
The EPS payout ratio of 27.98% and FCF-based 38.72% suggest that Northrop Grumman Corporation maintains an impressively sustainable dividend with plenty of room for reinvestment and growth.
💰 Cashflow & Capital Efficiency
Understanding cash flows assists in comprehending how effectively the company can reinvest in its operations while rewarding shareholders with dividends.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.04% | 3.80% | 2.96% |
| Earnings Yield | 5.11% | 6.05% | 2.89% |
| CAPEX to Operating Cash Flow | 29.17% | 40.27% | 45.81% |
| Stock-based Compensation to Revenue | 0.28% | 0.25% | 0.22% |
| Free Cash Flow / Operating Cash Flow Ratio | 69.52% | 59.73% | 54.19% |
Northrop Grumman's cash flow metrics demonstrate a stable cash flow generation capability, with a respectable free cash flow yield, enabling the devotion of resources to both growth initiatives and shareholder rewards.
🗣️ Balance Sheet & Leverage Analysis
The balance sheet's strength reflects Northrop Grumman Corporation's ability to sustain operations through varying economic conditions and leverage expansion for growth.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.18 | 1.32 | 1.21 |
| Debt-to-Assets | 38.42% | 40.91% | 38.54% |
| Debt-to-Capital | 54.21% | 56.91% | 54.80% |
| Net Debt to EBITDA | 2.13 | 2.32 | 3.51 |
| Current Ratio | 1.09 | 0.99 | 1.13 |
| Quick Ratio | 0.99 | 0.89 | 1.04 |
| Financial Leverage | 3.08 | 3.23 | 3.15 |
The metrics indicate controlled leverage, with financing structures supporting operational flexibility and liquidity improvements to meet obligations.
📊 Fundamental Strength & Profitability
Exploration of profitability and return ratios reveals the efficiency and strategic positioning of Northrop Grumman Corporation within the sector.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 25.08% | 27.30% | 13.90% |
| Return on Assets | 8.14% | 8.46% | 4.42% |
| Margins (Net) | 9.97% | 10.17% | 5.23% |
| Margins (EBIT) | 13.66% | 13.33% | 7.36% |
| Margins (EBITDA) | 17.17% | 16.67% | 10.76% |
| Margins (Gross) | 19.81% | 20.38% | 16.67% |
| R&D to Revenue | 0% | 2.68% | 3.05% |
Profitability ratios underline the company's capability to convert revenue into profit effectively, demonstrating solid return on equity and consistent margins.
📈 Price Development
✅ Dividend Scoring System
| Criterion | Score (1-5) | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Overall Score: 32/40
⚠️ Rating
Northrop Grumman Corporation earns a robust dividend rating, underscored by its exemplary dividend stability and continuity. Its modest yield is offset by consistent growth and reliable financials, making it a favorable consideration for long-term, income-focused investors.
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