DOW JONES NEWSWIRES
Northrop Grumman Corp. (NOC) raised its quarterly dividend by 10%, looking to boost shareholder value with an increased payout.
The defense company boosted its dividend to 55 cents from 50 cents. The increased payout will cost the company an additional $50.3 million a year, based on its roughly 251.5 million shares outstanding as of April 20.
The dividend carries a yield of 3.7%.
"Today's dividend increase demonstrates our confidence in the company and our continued commitment to a balanced cash-deployment strategy that includes share repurchases and a competitive dividend," said Chief Executive Wes Bush.
Northrop Grumman, which builds pilotless aircraft like the Global Hawk as well as providing cybersecurity and logistics services, has been streamlining operations in recent years to cope with leaner defense budgets.
The company recently reported that its first-quarter earnings fell 4.5% on a revenue decline across its businesses.
Shares closed at $59.80 on Tuesday and were inactive premarket. The stock is up 2.3% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; email@example.com
(END) Dow Jones Newswires
May 16, 2012 08:04 ET (12:04 GMT)
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