February 25, 2026 a 07:31 am
GD: Dividend Analysis - General Dynamics Corporation
General Dynamics Corporation demonstrates a strong commitment to its dividend policy with a well-diversified business model in the aerospace and defense sector. A long dividend history paired with moderate growth indicates solid shareholder returns. While the dividend yield is modest, stability and growth potential are key attractions for income-focused investors.
📊 Overview
General Dynamics operates within the Aerospace & Defense sector, showcasing resilience and potential for steady income and long-term growth.
| Metric | Value |
|---|---|
| Sector | Aerospace & Defense |
| Dividend Yield | 1.63 % |
| Current Dividend Per Share | 5.90 USD |
| Dividend History | 49 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
General Dynamics' dividend history solidifies its reputation as a reliable dividend payer, crucial for long-term income strategies.
| Year | Dividend Per Share |
|---|---|
| 2026 | 1.50 USD |
| 2025 | 5.92 USD |
| 2024 | 5.58 USD |
| 2023 | 5.22 USD |
| 2022 | 4.97 USD |
📈 Dividend Growth
The growth in dividends underscores financial health and strategic revenue allocation, ideal for sustaining attractive yield levels.
| Time | Growth |
|---|---|
| 3 years | 6.00 % |
| 5 years | 6.50 % |
The average dividend growth is 6.50 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
General Dynamics maintains reasonable payout ratios, which are critical indicators of dividend sustainability.
| Key figure | Ratio |
|---|---|
| EPS-based | 37.84 % |
| Free cash flow-based | 40.31 % |
With an EPS payout ratio of 37.84 % and a FCF payout ratio of 40.31 %, General Dynamics showcases a strong capability to cover its dividends through both earnings and cash flow, indicating sustainable future payouts.
💰 Cashflow & Capital Efficiency
Solid cash flow generation and capital efficiency reflect operational strength and are vital for ongoing dividend affordability and growth potential.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 5.37% | 4.37% | 4.36% |
| Earnings Yield | 4.67% | 5.17% | 4.63% |
| CAPEX to Operating Cash Flow | 19.19% | 22.28% | 22.68% |
| Stock-based Compensation to Revenue | 0.43% | 0.38% | 0.37% |
| Free Cash Flow / Operating Cash Flow Ratio | 80.81% | 77.72% | 77.32% |
The figures demonstrate consistent cash flow generation relative to earnings and operational efficiencies, supporting the stability of dividend payments.
🧾 Balance Sheet & Leverage Analysis
Assessing balance sheet strength and leverage provides insights into a company's financial stability and its ability to sustain operations under varying conditions.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 0.52 | 0.48 | 0.38 |
| Debt-to-Assets | 0.20 | 0.19 | 0.17 |
| Debt-to-Capital | 0.34 | 0.33 | 0.28 |
| Net Debt to EBITDA | 1.75 | 1.54 | 1.22 |
| Current Ratio | 1.44 | - | - |
| Quick Ratio | 0.92 | 0.83 | 0.89 |
| Financial Leverage | 2.57 | 2.53 | 2.23 |
The leverage metrics suggest financial discipline and the ability to manage debt effectively, underpinning sustained operations.
🏦 Fundamental Strength & Profitability
Profitability measures and fundamental strength metrics indicate a company's long-term viability and ability to provide healthy returns on investment.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 15.56% | 17.14% | 16.43% |
| Return on Assets | 6.05% | 6.77% | 7.35% |
| Margins: Net | 7.84% | 7.93% | 8.01% |
| Margins: EBIT | 10.37% | 10.34% | 10.31% |
| Margins: EBITDA | 12.41% | 12.20% | 11.60% |
| Margins: Gross | 15.78% | 15.43% | 15.13% |
| Research & Development to Revenue | 1.21% | 1.18% | 0% |
The sustained profitability ratios and efficient cost management point towards robust operational capabilities, sustaining dividend payments and growth.
📉 Price Development
📌 Dividend Scoring System
| Category | Score | Level |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 33/40
📈 Rating
General Dynamics Corporation maintains a strong dividend profile with excellent stability and growth prospects. The company’s disciplined payout ratios and robust financials make it an attractive choice for dividend-focused investors. With a robust score of 33 out of 40, GD is recommended as a hold in stable-income portfolios for long-term appreciation.