General Dynamics Corporation Declares Quarterly Dividend of $1.50 (NYSE:GD)

Key Points

• General Dynamics Corporation has declared a quarterly dividend of $1.50 per share, with stockholders on record receiving this payment on November 14th, resulting in an annualized dividend yield of 1.9%.
• The company reported a net margin of 8.13% and a revenue increase of 8.9% year-over-year, with quarterly earnings per share of $3.74, surpassing estimates.
• Analysts have mixed ratings on General Dynamics, with a consensus price target of $315.78, reflecting a combination of upgrades and downgrades from various financial institutions.

General Dynamics Corporation (NYSE:GD - Get Free Report) announced a quarterly dividend on Wednesday, August 6th, RTT News reports. Stockholders of record on Friday, October 10th will be given a dividend of 1.50 per share by the aerospace company on Friday, November 14th. This represents a c) annualized dividend and a dividend yield of 1.9%.

General Dynamics has a payout ratio of 35.9% indicating that its dividend is sufficiently covered by earnings. Analysts expect General Dynamics to earn $17.14 per share next year, which means the company should continue to be able to cover its $6.00 annual dividend with an expected future payout ratio of 35.0%.

General Dynamics Stock Up 0.4%

GD stock traded up $1.36 during mid-day trading on Wednesday, reaching $315.12. 893,364 shares of the company traded hands, compared to its average volume of 1,478,719. The company has a quick ratio of 0.83, a current ratio of 1.36 and a debt-to-equity ratio of 0.32. The firm's 50 day moving average price is $292.49 and its 200 day moving average price is $274.57. General Dynamics has a fifty-two week low of $239.20 and a fifty-two week high of $322.50. The stock has a market cap of $84.76 billion, a price-to-earnings ratio of 21.15, a P/E/G ratio of 1.92 and a beta of 0.48.

General Dynamics (NYSE:GD - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The aerospace company reported $3.74 EPS for the quarter, beating the consensus estimate of $3.47 by $0.27. General Dynamics had a net margin of 8.13% and a return on equity of 17.99%. The company had revenue of $13.04 billion during the quarter, compared to the consensus estimate of $12.13 billion. During the same quarter in the prior year, the company posted $3.26 earnings per share. The firm's revenue for the quarter was up 8.9% on a year-over-year basis. As a group, equities research analysts predict that General Dynamics will post 14.83 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the company. Deutsche Bank Aktiengesellschaft raised General Dynamics from a "hold" rating to a "buy" rating and raised their price target for the company from $298.00 to $342.00 in a report on Tuesday, July 8th. Wells Fargo & Company dropped their price objective on shares of General Dynamics from $261.00 to $236.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 8th. Morgan Stanley reduced their price target on shares of General Dynamics from $305.00 to $300.00 and set an "equal weight" rating on the stock in a report on Thursday, April 24th. Sanford C. Bernstein set a $314.00 price target on shares of General Dynamics and gave the company a "market perform" rating in a research note on Monday, July 14th. Finally, Wolfe Research upgraded shares of General Dynamics from a "peer perform" rating to an "outperform" rating and set a $360.00 price objective on the stock in a research note on Thursday, July 24th. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating and nine have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $315.78.

About General Dynamics

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services.

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