5 Dividend Aristocrats with Payout Ratio Less than 55%

4. General Dynamics Corporation (NYSE: GD)

Number of Hedge Fund Holders: 37
Dividend Yield: 2.4%
Number of Years of Consistent Dividend Increases: 30

Payout Ratio: 39.5%

General Dynamics Corporation (NYSE: GD), an aerospace and defense company, ranks 4th on our list of dividend aristocrats with payout ratio less than 55%. The company operates through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

This July, Credit Suisse raised its price target on shares of General Dynamics Corporation (NYSE: GD) from $182 to $198. The firm also holds a Neutral rating on the stock.

In the second quarter of 2021, General Dynamics Corporation (NYSE: GD) had an EPS of $2.61, beating estimates by $0.06. The company’s revenue was $9.22 billion, but missing estimates by $97.44 million. General Dynamics Corporation (NYSE: GD) has gained 19.55% in the past 6 months and 36.85% year to date.

By the end of the second quarter of 2021, 37  hedge funds out of the 873 tracked by Insider Monkey held stakes in General Dynamics Corporation (NYSE: GD) worth roughly $6.2 billion. This is compared to 31 hedge funds in the previous quarter with a total stake value of approximately $5.9 billion.

Oakmark Funds, an investment management firm, mentioned General Dynamics Corporation (NYSE: GD) in its first-quarter 2021 investor letter. Here’s what they said:

“The second new U.S. equity purchase was General Dynamics, a leading U.S. defense contractor and owner of the world’s premier business jet franchise (Gulfstream). We were able to purchase this high-quality and durable business at a meaningful discount to our estimate of its intrinsic value after a series of near-term concerns hurt its share price. Taking a longer term view, the company’s business jet franchise should benefit from a multi-year investment program in new, differentiated product. Also, its free cash flow conversion is set to improve materially and the company is poised to benefit from a highly visible ramp up in revenue related to next generation nuclear-powered submarines. As these positives come into clearer view, we expect sentiment to improve, along with the company’s share price.”