The third-largest defense contractor in the world, Northrop Grumman (NYSE symbol: NOC) designs and manufactures submarines, spacecraft, aircraft carriers and computer systems. The U.S. Department of Defense is responsible for approximately 90 percent of the organization’s revenue. In 2009, Northrop Grumman achieved $6.36 billion in gross profit against revenues of $33.8 billion.

Primary Competitors
Boeing Company and Lockheed Martin ranked first and second in the defense contractor industry in 2009. Boeing achieved $13.4 billion in profits in 2009, against revenues of $68.3 billion. Lockheed Martin posted 2009 profits of $5.08 billion against revenues of $45.2 billion.

Stock Performance Versus Competitors
During the period between August 1, 2009 and July 31, 2010, Northrop Grumman’s stock achieved its highest price per share on May 3, 2010, when it reached $69.80. Its lowest stock price was $42.51 per share, recorded July 29, 2009. During the same time frame, Boeing’s stock price soared to a high price per share of $76.00 per share on May 3, 2010 versus an October 29, 2009 low price of $41.43. From a low price per share of $69.49 on October 29, 2009, Lockheed Martin’s stock price rose on May 3, 2010 to $87.19.

Dividend Information
Northrop Grumman has a dividend yield of 3% and a very low payout ratio of 36%. The five year growth rate of the dividend is a nice 13.27% but they have only been able to increase their dividend for the last 4 years. NOC has an ex-dividend date this month – August 26th.

Dividend History
2009: $1.69
2008: $1.57
2007: $1.48