In a recent executive order released by the White House, President Donald Trump took aim at U.S. defense companies, criticizing them for prioritizing investor returns over the needs of the nation’s warfighters. Trump vowed to block defense companies from paying dividends or buying back shares until they accelerated production to meet the country’s military needs.
Following Trump’s announcement, defense stocks initially fell but then rebounded after he proposed increasing the country’s military budget to $1.5 trillion by 2027, up from $901 billion in 2026. This move sent a clear message to defense contractors that they must focus on meeting the nation’s defense needs rather than maximizing shareholder returns.
Here is a breakdown of the dividend payments and share repurchases made by some of the top U.S. defense contractors in 2025:
Lockheed Martin:
– Dividends paid per share: $3.30 in Q1, Q2, and Q3, $3.45 in Q4
– Cumulative dividend payment till September 20: $2.3 billion
– Shares repurchased in 2025 till October 21: $2.3 billion
– Remaining unused share repurchase authorization: $9.1 billion
RTX:
– Dividends paid per share: $0.68 in Q1, Q2, and Q3, $0.66 in Q4
– Cumulative dividend payment till Q3: $2.7 billion
– Shares repurchased in 2025 till September 30: $50 million
– Remaining unused share repurchase authorization: $0.6 billion
Northrop Grumman:
– Dividends paid per share: $2.31 in Q1, Q2, and Q3, $2.30 in Q4
– Cumulative dividend payment till Q3: $964 million
– Shares repurchased in 2025 till September 30: $1.17 billion
– Remaining unused share repurchase authorization: $2.99 billion
Boeing, on the other hand, suspended dividends and share buybacks in March 2020 following the grounding of its 737 MAX jetliner. Although the U.S. lifted the flight ban on the jetliner in November 2020, dividends and buybacks remain on hold until further notice.
L3Harris Technologies:
– Dividends paid per share: $1.20 in Q1, Q2, and Q3, $1.25 in Q4
– Cumulative dividend payment till Q3: $678 million
– Shares repurchased in 2025 till October 30: $998 million
– Remaining share repurchase authorization: $2.4 billion
General Dynamics:
– Dividends paid per share: $1.50 in Q1, Q2, and Q3, $1.48 in Q4
– Cumulative dividend payment till Q3: $1.19 billion
– Shares repurchased in 2025 till September 28: $600 million
It is clear that President Trump’s directive has put pressure on defense companies to prioritize production over shareholder returns. As the nation’s defense needs continue to evolve, defense contractors will need to adapt their strategies to meet these demands while ensuring a balance between investor returns and national security.
