How to Find the Best Defense Stock

24/11/2023 13 min

Listen "How to Find the Best Defense Stock"

Episode Synopsis


Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/K5Y2TE8LGP4.


The best defense stocks are defensive. That is, they're able to continue increasing dividends and earnings over time, regardless of what's happening in the economy. RTX Corporation, formerly known as Raytheon, is one of the three biggest defense stocks out there by market cap and sales. Raytheon stock used to be a dividend aristocrat before their merger with United Technologies which resulted in an aerospace & defense company called RTX. All large defense contractors also have a commercial element to them, and RTX is sitting at about 40% commercial. While the S&P500 no longer considers RTX to be a dividend aristocrat, we still consider them a dividend champion which raises some questions around whether their dividend sustained its growth track record or not. One of our underpaid analysts will be probing to see if this defense contractor belongs in our dividend investing universe alongside the only other aerospace and defense company on the list - General Dynamics. If you're a dividend growth investor looking for defensive defense companies, this video is a must-see.