This is General Dynamics

timing

I believe in a strong national defense

In addition to an underleveraged balance sheet and more than $1 billion in cash, this recession-resistant defense contractor has an order backlog that should last them the next 2.5 years.

"This stock is still a buy here. I think that company will be pretty strong. I think it's terrific, I'd pull the trigger." ("Mad Money Lightning Round," 4-24-09)

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%.

Increase of 8.60%; raised the quarterly dividend to 38 cents from 35 cents, payable May 8 to shareholders of record as of April 10.

The world's sixth-largest military contractor, General Dynamics (GD), raised its quarterly common payout 8.6%, to 38 cents a share from 35 cents. Holders of record April 10 will get the new dividend May 8; the ex-date is April 7. This is the 12th consecutive increase by the 110- year-old Virginia company. It's paid dividends without interruption since 1979. General Dynamics shares have been hurt by fear that President Obama will sharply cut defense spending. But Collins Stewart analysts James McIlree and Christine Bae, who rate the stock Hold, contend that Obama's "commitment to expanding the Army and Marines...will result in greater equipment sales for the company's combat-systems group," which is expected to generate more than 30% of volume and 32% of operating income in 2009. The weak economy, however, is affecting sales of the company's Gulfstream business jets. General Dynamics has an order backlog of $74 billion. It posted a 5.7% advance in fourth-quarter profits. Yielding 4.21%, the stock trades at roughly one-third its 52-week Big Board high.

In uncertain political times, Cramer said he would stay clear of the other kind of defensive stocks, mainly General Dynamics (GD)and Lockheed Martin (LMT).

Big-time defense stock. One of the usual suspects.

groth only over 16 month period