Covered, compounding. A 1.53% yield on a 47.47% trailing payout is covered and still compounding — $0.73 a quarter, raised from $0.68 in May 2026, extending 4 years of increases in the dividend history. The payout is moderate, leaving room for further raises if aerospace and defense earnings hold.
Key risk: Aerospace and defense cycles — commercial aftermarket softness or defense program delays would compress the earnings behind the payout.
Changes if: The trailing payout pushes well past 47.47%, or the dividend stops growing. Payout coverage is the tripwire here.
- ✓Payout-coverage check: 47.47% trailing payout ratio — covered, with just over half of earnings retained.
- ✓Yield check: 1.53% indicated — $0.73/qtr × 4 at the $191.01 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: 4 years of increases in the dividend history; the latest raise lifted the quarterly dividend from $0.68 to $0.73 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.