Trump Halts Dividends for Defense Giants, Causing Stock Price Drops
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 07 2026- Dividend Cessation: Trump announced the halt of dividend payments for the largest U.S. defense companies, causing Lockheed Martin (LMT) to drop 2%, losing $11, which undermines investor confidence and may lead to long-term capital outflows.
- Stock Price Volatility: RTX Corp (Raytheon) saw a $3 decline from its $193 peak, while Northrop Grumman (NOC) and General Dynamics (GD) also faced similar 2% losses, reflecting market uncertainty regarding the future of the defense sector.
- Executive Compensation Reform: Trump mandated that defense industry executives' salaries must not exceed $5 million, emphasizing that excessive pay relative to slow equipment delivery could hinder necessary investments in production facilities, potentially affecting overall industry efficiency.
- Market Impact: Trump's announcement, coupled with Bitcoin prices falling below $91,000, exacerbates market turmoil, diminishing investor confidence in the defense sector and potentially leading to broader market instability.
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.
