The U.S. defense contractor General Dynamics Corp announced on Wednesday that it will pay a quarterly cash dividend of $1.59 per share.

The dividend, which has been approved by the board of directors, is scheduled for payment on May 8, 2026, with an ex-dividend date and record date of April 10, 2026.

Dividend Increase and Historical Context

This dividend represents a 6% increase from the previous quarterly payment of $1.50 per share, continuing the company's long-standing tradition of stable and growing shareholder returns.

On an annualized basis, the dividend amounts to $6.36 per share, which equates to a dividend yield of approximately 1.9% based on the current stock price.

The company has a strong record of consistent dividend payments, having increased its payout annually since 2018, when the annual dividend was $3.63 per share, rising to $5.92 per share for 2025.

Strong Financial Performance Supporting the Hike

This dividend increase aligns with the company's robust financial performance.

According to its first-quarter earnings report, General Dynamics Corp generated revenue of $13.5 billion, a 10.3% year-over-year increase.

Earnings per share came in at $4.10, significantly surpassing analyst expectations of $3.67.

Operating cash flow was $2.2 billion, with free cash flow nearing $2.0 billion, resulting in a cash conversion rate of 174%.

Raised Guidance and Strong Backlog

Based on the strong quarterly results, the company raised its full-year 2026 earnings per share guidance to a range of $16.45 to $16.55, up from the previous range of $16.10 to $16.20.

The company's order book remains robust, with quarterly orders exceeding $26 billion, yielding a book-to-bill ratio of 2 to 1.

This drove the total backlog to $131 billion, a 48% increase compared to the previous year.

Analyst Sentiment

Currently, five major institutional analysts rate General Dynamics Corp as a "Buy," two as a "Strong Buy," and six as a "Hold."

The average price target for the stock is $390.