Defense stocks face increasingly negative sentiment from the analyst community as the industry struggles with declining global defense spending. At the same time, the best stocks in the aerospace and defense sector have a proven track record of steady dividend growth. Dividend increases are possible because defense companies still generate significant free cash flow, even though their revenue is not growing at high rates.
Despite the uncertainty of contracting defense budgets, aerospace and defense stocks performed well for the most part over the past year. In addition, these five aerospace and defense stocks pay solid dividends to shareholders and raise their dividends regularly.
Let's take a closer look at those stocks: LMT, BA, RTN, GD, NOC
Source: Dividend.com