Northrop Grumman traditionally followed a conservative business model similar to that of a utility in which declared dividends did not change at all from year to year regardless of business conditions.
Our conservative asset allocation model suggests maintaining a 50% exposure to equities, diversified among large-, mid- and small-cap domestic stocks and international stocks.
In addition to generating those exceptional internal returns, the firm has upped EPS in every year of the past decade and it has no long-term debt, showing the consistency and conservative financing my Buffett-based model cherishes.