A defense and aerospace company with deep roots in submarine building and business jet manufacturing has grown its dividend at a 6% annual clip over the past three years, a pace that lands in the top 40% of all dividend paying stocks we track.
The company sits across four segments spanning military ships, land vehicles, IT services, and private aviation, giving it a mix of long government contracts and shorter commercial sales cycles. A record order backlog and rising production output at its shipyards point to steady cash generation ahead, though a gap between two aircraft programs and dependence on federal budget decisions add some uncertainty to the picture.
That combination of durability and near-term catalysts is exactly what our Dividend Growth Stocks Portfolio looks for in an existing holding. We increased our position because the underlying business kept strengthening even as the dividend growth rate stayed measured. A long increase streak paired with improving cash flow gives us confidence that the payout still has room to climb.
