Northrop Grumman Corporation

NOC
Industrials
$482.50
1.71%Fair Value

Northrop Grumman Corporation (NOC) is a Industrials company that currently yields 1.71% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $433.72 and the overvaluation threshold at $583.49. Northrop Grumman Corporation holds a quality score of 35/100 (Risky), reflecting 14 consecutive years of dividend growth with a 30% payout ratio. The 5-year dividend CAGR stands at -18.3%.

NOC Dividend Yield History — Weiss Valuation

Underval. $433.72Overval. $583.49

Distance to undervalued

Waiting for a better entry

Needs about 10.1% downside to reach the Weiss buy zone

Undervaluation starts near $433.72, where the annual dividend would imply roughly 1.90% yield. That is 0.19% above today's yield.

Buy-zone price

$433.72

Target yield

1.90%

Research checklist

What to clear before buying the yield

Updated Oct 7, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

30%

Earnings coverage leaves room for noise.

Cash payout

57%

Free cash flow coverage supports the payment.

Dividend growth

-18.3%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-10-06 → 2026-10-07

Price

+1.6%

$474.84 → $482.50

Price rose 1.6% since the prior snapshot.

Why Now?

Northrop Grumman Corporation is trading at a fair valuation relative to its dividend history.

Current yield 1.7% vs historical max 4.0% (43% of maximum).

Recent dividend history shows no sustained growth streak.

Conservative payout ratio of 30%.

What matters now

Read the signal before the headline yield

Valuation is neutral here: quality has to do more of the work than entry price.

The 35/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

NOC Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$171

Year 10 Income

$199

Yield on Cost

2.02%

Total Income

$1,845

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

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NOC Dividend Quality Score

Quality Score

35/ 100

Risky

Payout Ratio25/25
Dividend Streak0/25
Growth (CAGR 5Y)0/20
Yield vs History0/15
FCF Coverage10/15

Key Metrics

Current Price$482.50
Annual Dividend$8.24
Current Yield1.71%
Yield — Max (10Y)3.99%
Yield — Min (10Y)1.44%
Undervalued Below$433.72
Overvalued Above$583.49
Payout Ratio29.88%
CAGR Dividend 5Y-18.3%
CAGR Dividend 10Y-4.0%
Years No Cut—

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14
consecutive years of dividend growth