By Josh Beckerman
General Dynamics Corp. has increased its quarterly dividend to
69 cents from 62 cents.
The aerospace and defense company's decision to raise the payout
by 11.3% follows an increase last year, from 56 cents.
Uncertainty over military spending has led contractors away from
the large-scale acquisitions that dominated the downturn of the
1990s. They are using much of their free cash for buybacks and
higher dividends.
General Dynamics' Gulfstream operations helped the company beat
analysts' fourth-quarter profit expectations.
Phebe Novakovic, chief executive of General Dynamics, said in
January that Gulfstream demand was "quite handsome" in fourth
quarter and said Gulfstream output will increase this year.
Boeing Co. announced a 25% dividend increase in December.
Lockheed Martin Corp. said in September that its dividend would
rise 13%.
Based on Wednesday's closing stock price of $136.25, the new
General Dynamics dividend will provide a 2% yield.
Write to Josh Beckerman at josh.beckerman@wsj.com
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