Defense contractor General Dynamics (NYSE: GD), the maker of nuclear submarines, Navy destroyers and Gulfstream jets, said it will raise its quarterly dividend by 10.5% to 42 cents a share from 38 cents. General Dynamics is a steady dividend raiser with annual increases for over 15 years.

With the latest increase, General Dynamics' dividend has nearly quadrupled since 1999.

The new dividend is payable on May 7 to shareholders of record on April 9. General Dynamics' current payout ratio is 24%.

Based on Wednesday's closing price, General Dynamics will yield around 2.3% when factoring in the new dividend.

The shares currently trade at just 10.4 times forward earnings and are up 7% year-to-date.

Thus far in 2010, nearly 50 members of the S&P 500 have boosted their dividends.

More than 20 companies, including stocks outside of the S&P 500, have raised their payouts in the last two weeks alone.