Covered, steady — but flat. A 1.02% yield on a 17.34% trailing payout is well covered, but it is not compounding: $0.37 a quarter, unchanged since at least 2021, while the share price rose sharply in 2026. The payout is safe; the income stream is standing still, so this card pays rather than grows.
Key risk: Federal-contract concentration — revenue depends on U.S. military and civilian agency contracts, so recompete losses or budget shifts hit earnings directly.
Changes if: The dividend is raised again, which would restore the compounding leg — or earnings fall enough to push the payout well past 17.34%.
- ✓Payout-coverage check: 17.34% trailing payout ratio — covered many times over, with most earnings retained.
- ✓Yield check: 1.02% indicated — $0.37/qtr × 4 at the $145.73 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- !Dividend growth check: No increase since at least 2021 — $0.37 a quarter every quarter in the history shown. Covered, but not compounding.
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.