This rise in distributable income vouches for the company's strong balance sheet and a steady cash flow position, which provides it with financial flexibility and a cushion for incremental dividend. Can Northrop Sustain Dividend Hikes? Northrop has inked a deal to take over rocket-maker Orbital ATK for $9.2 billion in 2017 and the transaction is expected to close in the first half of 2018. This acquisition will likely boost Northrop's product portfolio as Orbital ATK has contracts with NASA and the U.S. Army. The consolidation will be accretive to Northrop's earnings per share and its free cash flow in 2018. Further, the acquisition might lead to annual cost savings of nearly $150 million by 2020. Defense being a capital-intensive sector, business investment remains Northrop's first priority. The company continues to anticipate free cash flow of $2-$2.3 billion after capital spending of approximately $1 billion in 2018.