Trump Targets Defense Contractor Buybacks and Dividends in Policy Shift

President Trump's unexpected critique of stock buybacks and dividends at defense contractors marks a significant policy pivot, aligning with progressive critiques of corporate capital allocation. The WHITE House statement explicitly condemned these practices as "no longer allowed or tolerated," injecting presidential authority into a longstanding Wall Street debate.

Defense sector stocks reacted immediately to the announcement, continuing a pattern where Trump's direct interventions move markets. This follows recent administration actions influencing semiconductor and steel companies, including negotiated stakes in Nvidia and U.S. Steel transactions.

The MOVE reflects Trump's growing willingness to override traditional corporate governance, having simultaneously announced plans to review executive compensation structures. Market observers note parallels to his earlier housing market intervention proposing restrictions on institutional home purchases.