General Dynamics Increases Quarterly Dividend

General Dynamics (GD: 74.15 +0.28%) announced yesterday that its board of directors has approved a 9% increase in their quarterly dividend. The new dividend rate will pay $.38 per share up from $.35 per share.

The dividend yield now stands at 3.8%, up slightly from 3.5%.

However, the markets did not react positively to the dividend increase. General Dynamic’s shares were down 5.8% to $37.90 in mid-morning trading. Investors have already seen the shares lose 30% of their value since the beginning of the year.

The dividend will be payable on May 8, 2009 to shareholders of record as of April 10, 2009.