3 Defense Giants Boosting Dividends as Shares Take a Ride

Top stocks in the aerospace and defense industry have experienced a lot of volatility in 2026. Multiple names are way down from their recent highs, with upward price action largely mirroring the initial ratcheting up of tensions in Iran. Now, as the conflict has shown signs of de-escalation, share prices have come down. Despite this, companies are holding one thing steady—their commitment to provide more dividend income to shareholders, with key stocks boosting their dividends.

Northrup Goes on a Rollercoaster Ride in 2026, Dividend Pushes Higher

First up is Northrup Grumman (NYSE: NOC), known by many for building highly advanced stealth aircraft for the U.S. government, such as the B-2 Spirit. Notably, the stock peaked at a 37% year-to-date return in 2026 in early March, just days after the conflict in Iran began. However, shares have fallen massively since that point, now down slightly on the year. The stock saw a huge 10.3% plunge after its Q1 2026 earnings release.

This came as Northrup beat estimates on sales and adjusted earnings per share (EPS) during the quarter, but did not raise its full-year guidance. Due to this, the company’s guidance came in below expectations. However, in another positive, Northrup announced an acceleration of the timeline for its Air Force Sentinel missile program, with first flight expected in 2027.

Despite the stock’s huge rise and fall, Northrup showed confidence in its outlook by announcing a significant 7% dividend increase. The company’s quarterly dividend will move up to $2.47 per share. The firm plans to make its next payment on June 17 to shareholders of record as of the June 1 close. Overall, Northrup holds a solid indicated dividend yield of roughly 1.7%. The firm has also increased its dividend by a steady five-year annualized rate of 9.66%.

RTX Stays in Green Amid Drawdown, Dividend Moves Up 7%

RTX (NYSE: RTX), often referred to as Raytheon, suffered a similar fate to Northrop in 2026, but to a lesser extent. Shares peaked on the same day as Northrop, putting the stock up 25% on the year. Shares have since fallen dramatically, but remain roughly flat on the year. The stock also reported earnings on the same day as Northrop and dropped sharply by over 7% in the next two days.

However, unlike Northrup, the company beat on sales and adjusted earnings per share (EPS), and raised its guidance. Still, the guidance increase was relatively small, with adjusted EPS forecasts moving from a midpoint of $6.70 to $6.80. Investors may have taken this and weakness elsewhere in the industry as a reason to sell shares.

After its strong results, RTX also increased its dividend by 7%. The company’s quarterly dividend will increase to 73 cents per share. The company has already paid this higher dividend, but investors can still receive it in future quarters. RTX’s dividend yield sits just below Northrop's at about 1.5%. This marks the company’s fifth year in a row of raising its dividend after lowering its payout moderately in 2021.

Curtiss-Wright Shares Hold Strong Despite Low Yield

Last up is Curtiss-Wright (NYSE: CW). While smaller than both Northrop and RTX, Curtiss-Wright is certainly a sizable company, with a market capitalization near $27 billion. The stock was also up big in early March by around 36%. Shares lost around half that gain over the next month, but have since rebounded to near their prior peak. While Curtiss has significant defense exposure, it also has a large commercial business in nuclear power markets. This seems to have buoyed Curtiss, with shares seeing significant up moves at the same time as other nuclear stocks. Notably, Curtiss posted solid beats in its latest earnings report and raised its guidance, with the company noting strong growth in the commercial nuclear market.

The company also recently issued a meaningful 8% increase to its quarterly dividend. The firm’s quarterly payout increases to 26 cents per share, payable on July 6 to shareholders of record as of June 15. Despite Curtiss’s strong share price performance, its indicated dividend yield is very minimal, at just 0.1%. Still, Curtiss’s payout ratio sits at less than 10%, giving the company ample ability to raise its dividend further in the future.

Analysts Forecast Significant Rebound in Northrup After Fall

Among this group, Wall Street analysts are displaying the most optimism in Northrop Grumman’s future. The MarketBeat consensus price target on the stock sits near $702, implying more than 20% upside in shares. Targets updated after Northrop's last earnings report are notably higher, averaging around $719. This figure suggests that shares could rise by almost 30%. Hitting this target would put Northrop around 6% below its all-time high, reached in 2026.

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