Dividend Investing Ideas Center
Critical Facts You Need to Know About Preferred Stocks
Have you ever wished for the safety of bonds, but the return potential...
‘Flying the friendly skies’ may just be an advertising slogan, but it bears weight when it comes to the global aerospace sector and your portfolio. Thanks to rising defense budgets and overall demand for new aerospace products, stocks within the sector have become superstars for the long haul. This includes our latest Best Industrials Dividend Stocks Model portfolio pick. With more than 15 years’ worth of dividend increases under its wing, our pick has long been a top name in the sector!
In the search for the Best Industrials Dividend Stocks, 16 factors are scored across Industrials sector dividend stocks and only the best combination of attractive yield, dividend safety, returns potential and low returns risk receive a Buy rating. Our process is systematic, goal focused and designed for moderate risk investors with a long-term horizon seeking allocation to Industrials.
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Our pick was recently formed through a mega-sized merger of equals. However, its legacy businesses have been operating since the 1920s. Those underlying assets have created one of the largest firms dedicated to aviation and defense on the planet. With divisions covering everything from engines and radar to missile defense and even satellites, our pick has quickly become the preferred supplier for Uncle Sam, his NATO allies and the commercial aviation space.
The best part is our pick has continued to find ways to grow. Thanks to its high-tech focus, our pick is now one of the leading providers of products for the connected aerospace concept. Software, SaaS and new sensors/products are starting to quickly make up our pick’s revenues. Thanks to higher margins, this has only increased profits further. And now with commercial airlines beginning to rebound in the post-pandemic world, our pick has seen increasing CAPEX spending, adding additional revenues to its bottom line.
With cash flowing and shareholder rewards growing, such as its recent $6 billion buyback program, our pick is a prime example of how the aviation market can send a portfolio soaring.
This well-covered large-cap Aerospace & Defense stock is yielding an unattractive 2.24% with a $2.200/shr forward dividend that is paid quarterly. Their $143.9B market cap ranks 1st out of 20 dividend stocks in the Aerospace & Defense industry, and they have $33.9B in debt and $6.2B in cash.
The stock has support from both the sell-side and buy-side. Analysts are Overweight-rated on average with expectations for eps to grow a healthy 16% next year. Relative to the 52-week highs, the stock is outperforming the S&P 500 at -10% vs -16% and is an average performing Aerospace & Defense dividend stocks, which are -12% as a group.
Year-to-date, the stock has returned -5% vs 2% for the S&P 500 and -6% for the Aerospace & Defense industry.