Monday, August 1, 2011

NORTHROP GRUMMAN, Symbol NOC, dividend machine for August 1, 2011

The Lockheed C-130 Hercules serves as the prim...Image via Wikipedia

Years ago when I first started in this business a colleague suggested to me that I buy more than one stock in each of the areas I wanted to invest.  At that point in time, I still worked and did not have as much interest in dividend stocks.

His advice applies to dividend machines as well. Northrop Grumman, symbol, NOC is the second stock I have profiled in the aerospace industry.

The first was Lockheed Martin, which with the dividend and covered call income has been a stellar performer for the income investor.

NOC earns a mighty $6.53 per share and that number goes up all the time.  If you own NOC by August 25, 2011, you will receive the quarterly dividend of $.50 per share on September 10, 2011. NOC’s annual dividend is $2.00 a share to investors.

NOC’s dividend, as is required for a dividend machine, has increased every year for at least the past five years.  Based upon the closing price on Friday, July 29, 2011 of $60.51, NOC’s dividend yield is 3.31%.  For a large manufacturer with very capital extensive products, it is refreshing to see NOC’s D/E ratio at only .33.

An investment the income investor can love.

Very Truly Yours,
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