Covered, compounding. A 1.79% yield on a 31.16% trailing payout is covered with room to spare: $2.47 a quarter, raised from $2.31 in May 2026 for the 22nd consecutive year, backed by a roughly $104.7 billion order backlog and 2026 free-cash-flow guidance of $3.1–$3.5 billion against a far smaller annual dividend obligation.
Key risk: Government-budget dependence — most revenue comes from U.S. government contracts, so budget cuts, program delays, or a lost competition hit the earnings behind the payout directly.
Changes if: The trailing payout pushes well past 31.16%, or the dividend stops growing. Payout coverage, not the yield, is the tripwire here.
- ✓Payout-coverage check: 31.16% trailing payout ratio — covered, with more than two-thirds of earnings retained.
- ✓Yield check: 1.79% indicated — $2.47/qtr × 4 at the $551.44 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: 22 years of increases; the latest raise lifted the quarterly dividend from $2.31 to $2.47 in May 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.