Key Highlights

  • Northrop Grumman's $2.47 quarterly Dividend has an ex-date of August 31, 2026, payable September 16.
  • The dividend yields approximately 1.81% at current share price levels.
  • Second-quarter 2026 sales reached $10.9 billion, up 5%, with the company booking $20 billion in net awards and Backlog reaching a record $104.7 billion.
  • Management raised its 2026 sales outlook to $43.75 billion to $44.25 billion.

Northrop Grumman's $2.47 dividend yields approximately 1.81%, a payout backed by one of the more reassuring numbers a defense contractor can post: a record $104.7 billion backlog. That kind of multi-year Revenue visibility is precisely what gives a dividend like this durability, even as the company navigates the Financial Risk of programs like the B-21.

Dividend Program and Shareholder Returns

Northrop Grumman (NYSE:NOC) increased its quarterly dividend by 7% to $2.47 per share, trading ex-dividend on August 31, 2026, payable September 16 to shareholders of record. The dividend yields approximately 1.81% at current market prices. The increase reflects the company's ongoing commitment to shareholder returns, supported by generally resilient defense cash flows, though individual program execution can affect free Cash Flow in any given period.

About the Company

Northrop Grumman is a global aerospace and defense contractor developing advanced aircraft, missile-defense systems, satellites, and strategic deterrence programs for the U.S. Department of Defense, intelligence agencies, and allied governments. The company's competitive position rests on engineering capabilities, security clearances, and long-standing government relationships, though its long-cycle, high-technology programs carry execution risk.

Financial Performance Behind the Payout

Northrop Grumman reported second-quarter 2026 sales of $10.9 billion, up 5% year over year, with net Earnings of approximately $1.09 billion and diluted EPS of $7.68. The company booked $20 billion in net awards, increasing backlog to a record $104.7 billion. Management increased its 2026 sales outlook to $43.75 billion to $44.25 billion. Q2 EPS declined 6% from the year-ago comparison, largely because 2025 included a gain from a Business sale and a larger pension adjustment.

Managing Risk on the B-21 Program

The company maintained a $1.0 billion loss accrual related to the B-21 Raider's low-rate initial-production phase, reflecting the financial risk inherent in complex, fixed-price defense programs. The B-21, missile defense, space systems, and classified programs remain central growth drivers, supported by expanding defense budgets and strategic modernization needs. The principal risk is execution on these complex programs, alongside cost Inflation and supply-chain pressure.

Outlook

Northrop Grumman's dividend is well supported by a record backlog and raised sales guidance, providing multi-year revenue visibility uncommon in many industries. The B-21 program's loss accrual is a reminder that execution risk on major defense contracts remains a Factor to monitor, even as the broader growth outlook for strategic defense programs remains favorable.