On Monday, March 9, 2026, the Board of Directors of General Dynamics Corporation (NYSE: GD) announced a quarterly dividend increase from $1.50 to $1.59 per share. The dividend will be payable on May 8, 2026, to shareholders of record as of April 10, 2026. This represents a 6.0% increase over the prior quarterly dividend.
Current Dividend Yield and Income Impact
At yesterday’s closing price of $353.85, this increase raises GD’s forward dividend yield to approximately 1.80%.
As an owner of 40 shares of General Dynamics Corporation, this dividend increase adds $10.73 to my projected annual net dividend income. I was expecting growth of around 6%, so the announcement was in line with my expectations.
Long-Term Dividend Growth Track Record
General Dynamics is a Dividend Champion with a 34-year streak of dividend increases. According to Dividend Champions data, its dividend growth rates are:
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1-year: 6.1%
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3-year: 6.0%
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5-year: 6.5%
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10-year: 8.2%
This recent dividend increase marks the seventh consecutive raise I’ve received since initiating my position in January 2020. Over that time, the quarterly dividend has grown from $1.14 to $1.59 per share—an increase of approximately 39.5%, reflecting steady and reliable dividend growth.
At the time of writing, GD represents about 1.44% of my portfolio and contributes approximately 0.67% of my projected annual dividend income. Following this increase, my yield on cost stands at 4.72%.
Quick Valuation Take
General Dynamics appears fairly valued at current levels. As a major defense contractor with strong exposure to government defense spending and a solid backlog, the company continues to benefit from stable long-term demand.
Dividend Safety and Outlook
The dividend remains well supported by strong earnings and cash flow generation. With a reasonable payout ratio and consistent business performance, General Dynamics appears well positioned to continue delivering mid-single-digit dividend growth in the coming years.
Final Thoughts
This was a solid and expected dividend increase from General Dynamics. The company continues to deliver steady income growth and remains a dependable dividend growth holding in my portfolio.
Summary of 2026 Dividend Increases / Cuts
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You can follow the development of my dividends here
Full Disclosure: Long GD
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