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Defense Stocks as a Recession Dividend Play

Aaron Levitt Apr 30, 2020

Uncertainty. If there could be one word to describe the economic situation right now, it would have to be that one. Thanks to the COVID-19 pandemic, sheltering place orders and measures to stop the spread, the world’s economy is on less-than-steady footing. Investors – especially those seeking income – have been left to find ways to combat that uncertainty, make investment profits and still carry on with their daily lives. Luckily, there is one industry that is designed to deal with rising ambiguity head on.

We’re talking about defense stocks.

The various makers of airplanes, radar and other needed protection gear offer a unique value proposition in the current environment: guaranteed revenues. Thanks to the fact their clients are world governments, the defense sector offers a steady stream of profits that will happen no matter the economic environment.

For income seekers, this is a key win and selling point for the sector.

Dividend.com has a dedicated page that tracks aerospace and defense stocks. Check it out here.

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