General Dynamics Increases Quarterly Dividend By 8.2%


General Dynamics Corp. increased its quarterly cash dividend by 8.2% to $1.19 per share. The aerospace and defense company has now raised its dividends for 24 consecutive years.

General Dynamics (GD) announced that the new dividend will be paid on May 7 to shareholders of record as of April 9.

The company’s annual dividend of $4.76 per share now reflects a dividend yield of 2.8%.

On Jan. 27, General Dynamics reported 4Q EPS of $3.49 per share, down 0.6% year-on-year and lower than analysts’ expectations of $3.54. Revenues declined 2.7% and stood at $10.5 billion, which fell short of Street’s estimates of $10.78 billion. (See General Dynamics stock analysis on TipRanks).

On Jan. 31, Cowen & Co. analyst Cai Rumohr maintained a Buy rating and a price target of $183 (9% upside potential). In a note to investors, the analyst said, “Q4’s ops miss overshadowed signs of GDIT [General Dynamics Information Technology] upturn and long awaited cash flow ramp. These should continue in 2021, offsetting Gulfstream weakness and mixed defense trends. However, a favorable Gulfstream product cycle, further cash ramp, and GDIT lift point to healthy 2022 upturn.”

Overall, the rest of the Street has a cautiously optimistic outlook on the stock, with a Moderate Buy consensus rating based on 2 Buys and 1 Sell. The average analyst price target of $170.67 implies upside potential of about 2% to current levels. Shares have gained around 5% in value over the past year.

Furthermore, TipRanks shows that financial blogger opinions are 95% Bullish, compared to a sector average of 70%.

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