Trump says he won't allow defense firms to do buybacks or pay dividends until they speed up production
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- President Trump said he would "not permit" defense firms to issue dividends or do stock buybacks.
- On Truth Social, Trump criticized "massive" dividends and stock buybacks "exorbitant" pay packages.
- Prominent defense contractors saw shares drop after Trump's statement.
President Donald Trump said he would "not permit" stock buybacks or dividends from US defense companies in a post on Truth Social on Wednesday.
In his post, the president blasted defense contractors for issuing "massive" dividends and buying back their stock. He said he wouldn't permit such practices until defense firms sped up production.
"Therefore, I will not permit Dividends or Stock Buybacks for Defense Companies until such time as these problems are rectified," he wrote. "MILITARY EQUIPMENT IS NOT BEING MADE FAST ENOUGH!"
Trump also took issue with what he called "exorbitant and unjustifiable" compensation packages for industry executives. Until companies build "NEW and MODERN" production plants, defense execs should be making no more than $5 million, he said, without providing details on how those guidelines would be implemented.
The White House did not immediately respond to a request for comment sent by Business Insider.
Defense stocks fell after the president's posts. Notable movers include:
General Dynamics: -3%
Northrup Grumman: -5%
Lockheed Martin: -5%
The defense sector has been a big focus for Trump dating back to his first term as president. In the past year, he's floated projects like creating a Golden Dome missile defense system and signed off on increasing defense spending to a record $901 billion.