3 Defense giants Boosting Dividends as Shares Take a Ride

Top stocks in the aerospace and defense industry have seen significant volatility in 2026. Most of the names are down from their recent highs, the rising price action symbolizes the first signs of tensions in Iran. Now, as the conflict has shown signs of easing, share prices have fallen. Despite this, the companies have held one thing constant—their commitment to providing more dividend income to their shareholders, the important shares that increase their dividends.

Northrup Goes on Rollercoaster Ride in 2026, Dividend Pushes Higher

First is Northrup Grumman (NYSE: NOC ), known to many for building the US government’s most advanced professional aircraft, such as the B-2 Spirit. In particular, the stock is up 37% for the year to date in 2026 in early March, a few days after the start of the conflict in Iran. However, shares have fallen significantly since then, and are now down slightly on the year. The stock fell 10.3% after its Q1 2026 earnings were released.

This came as Northrup beat sales and adjusted earnings per share (EPS) estimates during the quarter, but did not raise its full-year guidance. As a result, the company’s guidance came in below expectations. However, in another positive, Northrup announced an acceleration of the timeline for its Air Force Sentinel missile program, with the first flight expected in 2027.

Despite the stock’s dramatic ups and downs, Northrup showed confidence in its vision by announcing a massive 7% dividend increase. paid a dividend of $2.47 per share for the quarter. The company plans to make its next payment on June 17 to shareholders retained as of the end of June 1. Overall, Northrup paid a dividend of 1.7 %. The company also increased its dividend to a five-year trailing rate of 9.66%.

RTX Stays Green Amid Cash Drawbacks, Profits Up 7%

RTX (NYSE: RTX ), commonly referred to as Raytheon, suffered the same fate as Northrop in 2026, but on a smaller scale. Shares rose on the same day as Northrop, making the stock up 25% for the year. Shares fell sharply, but remained low for the year. The stock also reported earnings on the same day as Northrop and fell more than 7% over the next two days.

However, unlike Northrup, the company beat sales and adjusted earnings per share (EPS), and raised its guidance. Still, the guidance increase was modest, with adjusted EPS forecasts ranging from the mid-range of $6.70 to $6.80. Investors are likely to take this and weakness elsewhere in the industry as a reason to sell shares.

After strong results, RTX also increased its dividend by 7%. The company’s quarterly profit will rise to 73 cents per share. The company has already paid this high dividend, but investors can still get it in future quarters. RTX shares are up 1.5% compared to the previous trading day. This marks the fifth year the company has increased its dividend after lowering its payout in 2021.

Curtiss-Wright Shares Hold Strong Despite Lower Yield

Last up is Curtiss-Wright (NYSE: CW ). Although smaller than both Northrop and RTX, Curtiss-Wright is a large company, with a market capitalization of close to $27 billion. The stock rebounded in early March by nearly 36%. Shares lost about half of those gains over the next month, but have rebounded to near their previous highs. While Curtiss has significant exposure to defense, it also has a large commercial business in the nuclear energy markets. This appears to have boosted Curtiss, whose shares have seen significant gains at the same time as other nuclear stocks. Notably, Curtis posted strong beats in its latest earnings report and raised guidance, with the company noting strong growth in the commercial nuclear market.

The company recently issued a reasonable 8% increase in its quarterly dividend. The company’s quarterly dividend increases to 26 cents per share, payable on July 6 to shareholders of record as of June 15. Despite the strong performance of Curtiss’ share price, its dividend yield is very small, at 0.1%. Still, Curtiss’ payout ratio remains below 10%, giving the company ample ability to raise its dividends in the future.

Analysts Predict Significant Rebound at Northrup After Fall

In this group, Wall Street analysts show great optimism for the future of Northrop Grumman. The MarketBeat consensus price target for the stock sits near $702, implying a more than 20% upside for shares. The revised target after Northrop’s last earnings report is significantly higher, at $719. This figure suggests that the shares could rise by around 30%. Achieving this target would put Northrop about 6% below its all-time high, which was reached in 2026.

Companies mentioned in this article:

Company	Current Price	Price Changes	Dividend Yield	The P/E ratio	Consensus ratio	Consensus Price Target
RTX (RTX)	$177.90	+0.5%	1.53%	33.38	Buy Medium	$210.75
Northrop Grumman (NOC)	$556.40	+0.1%	1.66%	17.41	Buy Medium	$702.63
Curtis-Wright (CW)	$753.47	+3.0%	0.13%	55.20	Buy Medium	$746.67

About Leo Miller

Experience

Leo Miller has been a contributing writer for DividendStocks.com since 2024.

• Professional Background: Leo Miller is a financial writer with a background in investment research and market analysis. He held roles as an investment research partner at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained extensive experience in valuation and portfolio strategies.
• Confirmation: He holds a Bachelor of Business Administration in Finance from the University of Washington’s Foster School of Business, a top-ranked public business school. Passed the CFA Level II exam.
• Financial Experience: Leo started researching and investing in gold mining stocks in 2019 and started writing about finance and investing in 2021. He joined DividendStocks.com as a contributing writer in 2024, where he covers both stocks and ETFs. A strong research base and direct exposure to the financial markets shape his opinions.
• Writing Focus: He specializes in technology stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, practical understanding, and education for investors at all levels.
• How to Invest: Leo follows a disciplined, long-term investment strategy based on fundamental analysis, with a strong focus on economics, industry and sector research, and passive investment principles.
• Motivation: Leo finds the stock market endlessly compelling and enjoys the challenge of separating meaningful data from the noise. He is passionate about analyzing what makes businesses stand out—and sharing that insight to guide informed investment decisions. As he puts it, “Strong analysis requires separating the wheat from the chaff.”
• Fun fact: Leo credits his grandfather with sparking his interest in investing and is a lifelong animal lover.
• Areas of Expertise: Fundamental analysis, economics, industry and sector analysis

Education

Bachelor in Business Administration, Finance, Foster School of Business at the University of Washington