Trump Bans Dividends for Major Defense Firms, Shakes Stock Market
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 07 2026- Dividend Ban: Trump's presidential decree halts future dividend payments by major U.S. defense firms, leading to a stock value decline, with Lockheed Martin shares dropping 2%, losing $11, reflecting investor recalibration of future earnings expectations.
- Market Reaction: RTX Corp saw a $3 drop from its peak, while Northrop Grumman and General Dynamics shares fell by $12, indicating a significant loss of confidence in the defense sector amidst the announcement.
- Historical Context: These companies have been reliable dividend payers, with Lockheed Martin distributing about $3 billion annually, translating to $13.8 per share, and RTX Corp providing a dividend yield of $2.6 per share, totaling $3.5 billion, making the ban a critical blow to their investment appeal.
- Executive Compensation Reform: Trump also imposed a $5 million cap on executive salaries in the defense industry, aiming to redirect funds towards production capabilities rather than financial mechanisms, which will further reshape the industry landscape.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
