Dividend.com has added a major aerospace and defense stock to our Best Dividend Stocks list. This company has more than $24 billion in sales with more than 30% in international sales and the rest in domestic sales. They have 60,000+ employees working worldwide. Its main operating markets are space and airborne systems, integrated defense systems, missile systems, and intelligence information and services – all almost equally contributing to the topline.
The company became serious about its dividend back in the 1960s – and hasn’t looked back. Since then, the firm has managed to grow its payout by a staggering 14,550%, when accounting for stock splits. That wasn’t a typo and actually includes a period during the 1990s when it held its payout steady. They spent up to $1 billion in share repurchases in 2015 and increased their dividends by more than 9% in 2016, which comes on the back of more than 10 consecutive years of dividend increases.
To summarize, here are 4 reasons why you should own this stock:
- Solid history of paying dividends that have shown an upward trajectory.
- Defending the world from serious threats is a full-time job, which this company has been doing since the 1920s.
- 12.06% earnings growth expected in 2018 along with a mid-40% payout ratio leaves plenty of room for this company to grow its dividend.
- The stock is firmly in that ‘value’ category and offers a great combination of growth and income potential.
Soft Removal of a Utilities Stock
We are removing a utilities stock that we recommended on 01/22/2016. In a short span of 5 months, this stock has given a gain of 17%, excluding dividends. Even though we are removing the stock from the Best Dividend Stocks list, we continue to view it positively and maintain our bullish rating of 3.5.