While we all want world peace, it doesn’t look hopeful. The planet is awash in conflict and that very fact has proven to be very beneficial to our Best Dividend Stocks List’s aerospace & defense pick.
Since choosing our defense stock, higher military budgets and the number of threats facing various governments have only increased. So far, our pick has managed to produce a staggering 24.67% return in just over a year. That’s enough to make a $10,000 investment turn into over $12,700. It’s also sufficient to beat the S&P 500 by a wide margin.
See our original article on our pick here.
However, the best days for our aerospace pick could still be ahead. With President Trump calling for even more military spending and tensions in the war on terror as well as with North Korea escalating, our pick could see more big-time military contracts coming its way. Even better is its new-found focus on cybersecurity and software.
To summarize, here are five reasons why you should own this stock:
- Has grown its earnings per share by over 40% since 2011.
- New-found focus on cybersecurity and higher-margined services revenue.
- Recorded total revenues of more than $24 billion last year, with 31% from overseas.
- Strong balance sheet vs. its peers, with less than $2 billion in net debt.
- Healthy payout ratio of 42% and growing yield of 1.88%.