5 Dividend Stocks to Buy for Financial Freedom

3. General Dynamics Corporation (NYSE:GD)

Dividend Yield as of May 12: 2.26%

Number of Hedge Fund Holders: 48

General Dynamics Corporation (NYSE:GD) is a Virginia-based aerospace and defense company that operates via four segments – Aerospace, Marine Systems, Combat Systems, and Technologies. General Dynamics Corporation (NYSE:GD)’s dividend yield on May 12 came in at 2.26%, and the board approved its 25th consecutive annual dividend hike in 2022. 

On March 2, General Dynamics Corporation (NYSE:GD) declared a $1.26 per share quarterly dividend, a 5.9% increase from its prior dividend of $1.19. The dividend was distributed on May 6, to shareholders of the company as of April 8. 

General Dynamics Corporation (NYSE:GD) reported its first quarter financial results on April 27, posting earnings per share of $2.61, above consensus by $0.09. The Q1 revenue of $9.39 billion also outperformed analysts’ predictions by $371.23 million. 

Susquehanna analyst Charles Minervino on April 28 maintained a Positive rating on General Dynamics Corporation (NYSE:GD) and raised the price objective on the shares to $285 from $280. The analyst observed that the company continues to benefit from a strong recovery in the business jet market due to the robust Aerospace orders, which should generate high revenue growth and margin expansion in the coming years.

According to Insider Monkey’s Q4 data, 48 hedge funds were long General Dynamics Corporation (NYSE:GD), up from 36 funds in the prior quarter. James A. Star’s Longview Asset Management held the largest stake in the company, with more than 30 million shares worth $6.2 billion. 

Here is what Oakmark Global Fund has to say about General Dynamics Corporation (NYSE:GD) in their Q1 2021 investor letter:

“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 products. 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.”