Raytheon, which had $23.2 billion in sales last year, boosted its quarterly common dividend by 10.7% Wednesday, to 31 cents a share, from 28 cents. Disbursement will take place May 1 for investors on the Waltham, Mass., company's books April 7. The stock goes ex-dividend April 3. Taking into account the enriched payout, Raytheon shares yield 3.14%. "The increase in our dividend reflects our company's strong financial position, our continued confidence in our future and our ongoing commitment to our shareholders," declared chief executive officer William H. Swanson. Raytheon's payouts resumed their climb in 2005, after being stuck at 20 cents a share for a decade. Dividends have been paid without interruption since 1964. Raytheon repurchased 30.7 million of its shares in 2008 for $1.7 billion.

As detailed in this space March 9, General Dynamics (GD), sixth-biggest in the defense industry, hiked its quarterly 8.6%, to 38 cents a share, from 35 cents. This company, too, is expected to benefit from greater equipment sales for its combat-systems group, in line with President Barack Obama's commitment to expand the Army and Marines. General Dynamics trades at around 43, and yields 3.52%.