7 Best Defense Dividend Stocks to Buy

5. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 58

General Dynamics Corporation (NYSE:GD) is among the 7 Best Defense Dividend Stocks to Buy, with a dividend yield of 1.74% as of December 22.

On December 19, JP Morgan lifted its price target on the stock to $385 from $380, while maintaining an Overweight rating on the shares. The revision came as part of the firm’s outlook for the aerospace and defense industry heading into 2026.

In a research note to investors, the firm said the outlook for next year is generally positive. However, the defense sector is expected to be ‘more nuanced’ compared to aerospace, where JP Morgan anticipates robust demand to be backed up by supply growth.

The update follows Morgan Stanley’s adjustment on General Dynamics Corporation (NYSE:GD) on December 16, when the financial services firm upgraded the stock to Overweight from Equal Weight, and lifted its share price target from $385 to $408.

As of the close of business on December 22, Wall Street analysts have a consensus Moderate Buy rating on the stock, with a one-year average share price target of $387, representing an upside of 14%.

General Dynamics Corporation (NYSE:GD) is a leading global aerospace and defense company, operating through its Aerospace, Marine Systems, Combat Systems, and Technologies segments.

GD is a dividend aristocrat due to its consistent dividend growth for over three decades. On December 3, the company declared a quarterly dividend of $1.50 per share.