New York, February 7, 2026, 15:41 EST — The session has ended.
- RTX finished Friday at $198.66, gaining roughly 1.4%.
- The Pentagon plans to publish a list early next week naming contractors that might see restrictions on dividends and share repurchases.
- RTX set its quarterly dividend at 68 cents, payable March 19 to shareholders on record as of Feb. 20.
RTX shares finished Friday in the green, climbing roughly 1.4% to $198.66, with the sector on edge as the Pentagon gets ready to unveil, early next week, a roster of defense contractors under review. Lockheed Martin, Northrop Grumman, General Dynamics, and L3Harris are all in the spotlight alongside RTX. The backdrop: President Donald Trump’s Jan. 7 order could mean companies flagged as underperformers will face new curbs on dividends and stock buybacks—those being repurchases of their own stock. Data from Morgan Stanley put total payouts to shareholders at about $18 billion for the five largest defense names over the last 12 months. Trump has pointed directly at Raytheon, RTX’s unit, calling it “least responsive” to Pentagon demands. Any firms listed will have a 15-day window to submit remediation plans, signed off by their boards, with contract cancellations among the possible consequences. It’s still unclear whether subcontractors get swept in, and the order also directs the SEC to revisit buyback safe-harbor rules and tie executive compensation more closely to delivery performance. 1
The point is, these major primes are anchors for dividend-focused funds and insurers—not just plays on “defense exposure.” If anything spooks investors about potential payout risks, that alone can shift how the group gets priced, regardless of whether Washington ramps up weapons orders.
The timing’s not great. When traders are back on Monday, they’ll still be in the dark on what exactly the Pentagon means by “underperformance”—and it’s unclear if restrictions kick in automatically or get hammered out one by one.
Some investors voiced concern that putting a lid on CEO pay—and threatening dividends and buybacks—might drag down returns and crimp contractors’ ability to lure top talent. “Three-quarters of a step back” on capital allocation, Ancora Advisors managing director David Sowerby said. But for Charles Lieberman, chief investment officer at Advisors Capital Management, orders matter more for capital spending than payouts. “Cash flow is not a constraint,” he said. RTX CEO Christopher Calio told investors the company is “committed to the dividend.” Consultant Richard Aboulafia sees the policy possibly nudging sentiment toward younger players without dividends. 2
RTX’s board signed off on a quarterly dividend of 68 cents per share, with payment set for March 19 to shareholders on record as of Feb. 20. The company has kept up annual cash dividends on its common stock since 1936. 3
RTX submitted its annual Form 10-K for the fiscal year ending Dec. 31, 2025, with Arlington, Virginia named as its principal executive offices. Filings like these usually draw close attention from investors looking for tweaks in risk disclosures or fresh signals about capital return policy. 4
The way this gets enforced remains unclear. Freezing payouts could run straight into the long-standing assumption that dividends won’t miss a beat. If regulators go for a broad approach or apply rules unevenly, that’s what would probably trigger a sharper move in prices than the order alone.
RTX stock faces a near-term question around flexibility. Without buybacks to snap on when cash flows in, companies are left to either up dividends or sit on growing piles of cash.
Defense stocks are known to trade in tandem right after the open, even without any fresh headlines. Monday could see sharp moves as traders jockey over which contractors could show up on the Pentagon’s list.
Investors won’t get their next shot at U.S. market action until Monday, Feb. 9. Later in the week, the Pentagon’s contractor list drops. On top of that, the 68-cent dividend’s record date for the stock lands Feb. 20. 5
