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3 Great Defense Stocks Paying Good Dividends

Courtesy Northrop Grumman

In the wake of President Trump’s victory in November, the stock market has experienced a mix of exuberance and uncertainty. Nowhere has this been more apparent than in the defense sector. Since Election Day, the average aerospace and defense stock has returned 11.2%, outpacing Standard & Poor’s 500-stock index by 3.4 percentage points. But that run hasn’t come without hiccups, such as a presidential tweet decrying a major U.S. fighter jet program, which sent the stocks tumbling in December. Nevertheless, if the Trump administration can follow through on plans for a “historic” investment in the armed forces, major military contractors stand to profit.

Analysts expect these three stocks — all issued by major military contractors — to appreciate in price over the next year. But even if share prices wane, each company boasts a robust balance sheet and a dividend that has grown annually for at least a dozen years.

Share prices and other data are as of February 9. Price-earnings ratios are based on estimated year-ahead earnings from analysts tracked by Zacks Investment Research. Click on ticker-symbol links in each slide for current prices and more.

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