Northrop Grumman

Northrop Grumman is one of the largest US defence contractors, with leading positions in military aircraft, missile systems, space and, notably, strategic programmes such as the next-generation stealth bomber. Long-term government contracts and specialised, high-barrier technology give it a steady revenue base insulated from ordinary economic cycles. Northrop has raised its dividend for more than three decades, using consistent defence cash flows to fund increases alongside substantial share buybacks. The headline yield is low, held down by a strong share price, but the payout has grown steadily and rests on some of the most durable revenue streams in the market. It suits investors who value dividend growth and stability over current yield.