Covered, compounding — at a fuller payout. A 2.38% yield on a 51.13% trailing payout is covered, but fuller than most House cards: $3.60 a quarter, raised from $3.45 in Oct. 2026, extending 23 years of increases in the dividend history. The payout leaves less retained than a low-payout payer, so coverage depends on defense earnings holding up.
Key risk: Government-budget dependence — most revenue comes from government contracts, so budget cuts, program delays, or a lost competition hit earnings directly.
Changes if: Earnings fall enough to push the trailing payout well past 51.13%, or the dividend stops growing. Payout coverage, not the yield, is the tripwire here.
- !Payout-coverage check: 51.13% trailing payout ratio — covered, but fuller than a low-payout payer, so less is retained.
- ✓Yield check: 2.38% indicated — $3.60/qtr × 4 at the $604.18 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: 23 years of increases in the dividend history; the latest raise lifted the quarterly dividend from $3.45 to $3.60 in Oct. 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.