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Pentagon Targets Defense Contractors' Stock Buybacks, Dividends

2/7/2026

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Summary

Story summary

The Pentagon will publish a list of contractors facing restrictions on stock buybacks and dividends.
U.S. President Donald Trump issued an executive order to improve contract performance, requiring remediation plans within 15 days.
The five largest defense firms paid about $8 billion in dividends and $10 billion in share repurchases last year, and the order directs the U.S. Securities and Exchange Commission to bar such contractors from stock-repurchase safe harbors.

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Story summary

The Pentagon will publish a list of contractors facing restrictions on stock buybacks and dividends.
U.S. President Donald Trump issued an executive order to improve contract performance, requiring remediation plans within 15 days.
The five largest defense firms paid about $8 billion in dividends and $10 billion in share repurchases last year, and the order directs the U.S. Securities and Exchange Commission to bar such contractors from stock-repurchase safe harbors.