5 Best Dividend Stocks to Buy for Passive Income

In this article, we will take a look at the 5 Best Dividend Stocks to Buy for Passive Income. For deeper discussion and analysis, read 10 Best Dividend Stocks to Buy for Passive Income. 

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5. Northrop Grumman Corporation (NYSE:NOC)

Number of Hedge Funds: 62

Dividend Yield as of June 26: 1.98%

On June 26, Jefferies lowered its price recommendation on Northrop Grumman Corporation (NYSE:NOC) to $580 from $620. It reiterated a Hold rating on the shares. In its second-quarter preview, the firm estimated that Northrop Grumman’s revenue would grow about 5% year over year. It also expects the company to keep its full-year 2026 guidance unchanged. Jefferies noted that its FY26 earnings per share estimate of $27.70 is slightly below the consensus estimate of $27.93.

During the company’s first-quarter 2026 earnings call, Corporate Vice President and CFO John Greene reaffirmed the company’s full-year guidance for sales, earnings, and cash flow. He said the company still expects 2026 sales to come in between $43.5 billion and $44 billion.

Greene also said that Northrop is looking for high single-digit sequential sales growth in the second quarter. He noted that the company’s capital spending plan has increased from its original 2026 forecast. Capital expenditures are now expected to reach $1.85 billion after the company added another $200 million to expand production capacity for the B-21 program.

Even with the additional spending, Greene said Northrop Grumman is keeping its free cash flow guidance unchanged at $3.1 billion to $3.5 billion.

Northrop Grumman Corporation (NYSE:NOC) is a global aerospace and defense technology company with four operating segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems.