General DynamicsMEX:GD 86 5-Year Yield-on-Cost % is 2.48 as of Jul. 03, 2026, which is 12% below its 10-year median of 2.81. GuruFocus rates MEX:GD with a GF Score™ of 86/100 and a GF Value™ of MXN5,707.06 (Fairly Valued). The stock has 8 warning signs investors should review. Among 170 Aerospace & Defense companies, General Dynamics ranks better than 70.59% on this metric.
General Dynamics's yield on cost for the quarter that ended in Mar. 2026 was 2.48.
The historical rank and industry rank for General Dynamics's 5-Year Yield-on-Cost % or its related term are showing as below:
MEX:GD'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.98 Med: 2.81 Max: 4.86
Current: 2.48
During the past 13 years, General Dynamics's highest Yield on Cost was 4.86. The lowest was 1.98. And the median was 2.81.
MEX:GD's 5-Year Yield-on-Cost % is ranked better than 70.59% of 170
companies
in the Aerospace & Defense industry
Industry Median: 1.07
vs MEX:GD: 2.48
General Dynamics (MEX:GD) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
General Dynamics 5-Year Yield-on-Cost % Related Terms
MEX:GD vs HWM, TDG, NOC: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, General Dynamics's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
General Dynamics 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, General Dynamics's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where General Dynamics's 5-Year Yield-on-Cost % falls into.
General Dynamics 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
General Dynamics (MEX:GD) has a 5-Year Yield-on-Cost % of 2.48 as of Jul. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on General Dynamics and its competitors. This is 12% below median its historical median of 2.81. Over the past decade, General Dynamics' 5-Year Yield-on-Cost % has ranged from 1.98 to 4.86. According to the industry distribution chart, General Dynamics ranks #50 out of 170 companies in the Aerospace & Defense industry, placing it in the top 29.4%.
Is General Dynamics' 5-Year Yield-on-Cost % too high?
General Dynamics' current 5-Year Yield-on-Cost % of 2.48 is 12% below median its 10-year median of 2.81. Over the past 10 years, this metric has ranged from a low of 1.98 to a high of 4.86. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.07. General Dynamics' value of 2.48 is 131.8% above this industry median. Based on the distribution chart, General Dynamics ranks #50 out of 170 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, General Dynamics has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does General Dynamics' 5-Year Yield-on-Cost % compare to HWM and TDG?
According to the Aerospace & Defense industry distribution chart, General Dynamics ranks #50 out of 170 companies for 5-Year Yield-on-Cost %. This puts General Dynamics in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 1.07. General Dynamics' value of 2.48 is 131.8% above this benchmark. Historically, General Dynamics' own 5-Year Yield-on-Cost % has ranged from 1.98 to 4.86 over the past decade. While the company's 10-year median is 2.81 vs. the industry median of 1.07, General Dynamics has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.07, based on 170 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Dynamics's current 5-Year Yield-on-Cost % of 2.48 is 131.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on General Dynamics and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Dynamics's current 5-Year Yield-on-Cost % is 2.48, which is 12% below median its own 10-year median of 2.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Dynamics stock overvalued right now?
Based on GuruFocus' analysis, General Dynamics (MEX:GD) is currently considered Fairly Valued. The stock's GF Value™ is MXN5,707.06, compared to a current price of MXN5,976.00 — trading 4.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.48, which is 12% below median its 10-year median of 2.81 and 131.8% above the Aerospace & Defense industry median of 1.07. General Dynamics' overall GF Score™ is 86/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For General Dynamics (MEX:GD), the current 5-Year Yield-on-Cost % is 2.48 as of Jul. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is General Dynamics (MEX:GD) Overvalued in 2026?
Based on GuruFocus' analysis, General Dynamics stock appears to be overvalued.
The current stock price of MXN5,976.00 is trading 4.7% above its estimated GF Value™ of MXN5,707.06.
GuruFocus considers General Dynamics to be Fairly Valued.
Key valuation signals for MEX:GD:
5-Year Yield-on-Cost %: 2.48 (12% below median its 10-year median of 2.81)
GF Value™: MXN5,707.06 vs. price of MXN5,976.00 (4.7% above fair value)
Industry Position: 131.8% above the Aerospace & Defense median (#50 of 170)
No single metric tells the full story. See the MEX:GD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Dynamics is a defense contractor and business jet manufacturer. The firm's segments are aerospace, marine, combat systems, and technologies. General Dynamics' aerospace segment manufactures Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and Navy support ships. The technologies segment contains two main units: an IT business that primarily serves the government market and a mission systems business focusing on electronics that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.
86GF Score
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