It seems that no day passes without Donald Trump making a decision that baffles investors. Throughout 2025, Trump normalized what was once considered abnormal. Since the pandemic, the world has transformed, and everything now seems possible. Today, Trump announced that investors holding shares in defense giants would no longer receive any dividends.
Cancellation of Dividend Payments
In a statement referencing an upcoming presidential decree, Trump declared the cessation of dividend payments for the largest defense companies in the United States. The announcement impacted the share prices of these defense giants, which will neither repurchase shares nor distribute dividends, leading to a downturn in their stock performances.
Lockheed Martin (LMT) experienced a 2% drop, losing $11 after yesterday’s peak. Similarly, RTX Corp (Raytheon) saw a $3 decline from its $193 high. Northrop Grumman (NOC) wiped off $12 from its stock price, with losses reaching 2%. General Dynamics (GD) faced similar drops.
Lockheed Martin, which previously paid out approximately $3 billion annually in dividends, had provided $13.8 per share. RTX Corp distributed $3.5 billion, with investors receiving $2.6 per share. Dividend yields for these companies ranged from 1.59% to 2.78%. Investors who enjoyed over 2% dividend returns from these leading defense firms were disturbed by Trump’s latest announcement.
Trump stated: “Attention all United States Defense Contractors and the Defense Industry as a whole: We produce the best military equipment, unmatched by any other nation, yet defense contractors distribute substantial dividends to shareholders, compromising investments in factories and equipment. This will no longer be tolerated!”
In addition, changes are being made to executive salaries. Trump emphasized: “Compensation packages in the defense industry are excessive given the slow delivery of vital equipment. Salaries, stock options, and other forms of compensation are too high. Companies must build new and modern manufacturing facilities. Until then, no executive should earn over $5 million, a mere fraction compared to current earnings. Maintenance of equipment sold is too slow and must improve. As President, I demand punctual and flawless maintenance.”
Finally, Trump announced a decision impacting the stock markets. With Bitcoin prices dropping below $91,000, Trump once again reinforces that “anything is possible.” This spells trouble for the markets.
“Until these issues are resolved, I will not allow dividends or stock buybacks by defense companies. This also applies to salaries and executive compensation. MILITARY EQUIPMENT IS NOT PRODUCED FAST ENOUGH! Instead of resorting to financial institutions for loans or government money, these must now be funded by dividends, share buybacks, and excessive executive pay. Ultimately, this will be beneficial for both executives and shareholders as it will be GREAT for our country! Thank you for your attention to this matter. LET’S MAKE AMERICA GREAT AGAIN!”
