Top executives at major defense contractors said Tuesday they plan to continue rewarding shareholders with stock dividends despite President Donald Trump targeting the practice as part of his promised crackdown on military suppliers.
“We recognize our shareholders rely on our dividends, and they’ve come to expect our dividends,” RTX CEO and Chair Chris Calio said during his company’s earnings call. “We’ve been paying them for decades on a quarterly basis, so we remain committed to the dividend.”
The remarks from top executives marked the first round of public comments since the White House issued an executive order in early January to limit defense contractors’ stock buybacks, dividends and C-suite pay. The push is part of an effort to force companies to spend their profits on producing more weapons, more quickly and on budget.
