General Dynamics

Methodology

General Dynamics' defense and aerospace business generates relatively predictable earnings from long-term government contracts, though program timing creates quarterly volatility. The diverse portfolio from submarines to business jets provides some cyclical offset. This calculation works well given steady earnings growth from defense budget increases and business aviation recovery.

Methodology

General Dynamics typically commands moderate premium PEG ratios reflecting its critical defense programs and business jet franchise. The company's submarine and combat systems businesses enjoy limited competition and strong margins. PEG works effectively given consistent execution and visibility from multi-year defense contracts.

Methodology

General Dynamics pays a meaningful dividend with consistent growth, making PEGY moderately more attractive than PEG for this stable defense contractor. The predictable cash flows from government contracts support reliable dividend increases. Total return combines steady yield growth with earnings compounding from defense modernization and business aviation normalization.