Four Defense Stocks for Income Investors to Purchase as China Escalates Threats

The four defense stocks for income investors to purchase are based in the United States, have a track record of paying dividends and are highly recommended by seasoned stock pickers. They also may gain additional orders in the future with China raising tensions particularly in the Asia-Pacific region by sending 56 of its military jets into neighboring Taiwan’s air space on Oct. 4 in a show of force.

Potential catalysts that could help Raytheon (RTX) outperform BofA’s estimates of the manufacturer’s price objective include commercial aerospace and business aviation jets beating expectations and earnings faring better than the investment firm projects. BofA gave General Dynamics a price objective of $260, using a two-stage DCF analysis which assumes a 9.3% discount rate, 5.2% 2025-2030 growth rate and 2.7% long-term growth rate. Northrop Grumman (NYSE: NOC), a Falls Church, Virginia-based multinational aerospace and defense technology company, employs 90,000 people and produced more than $30 billion in annual revenue. L3 Harris (NYSE: LHX), a Melbourne, Florida-based defense contractor and information technology services provider, produces command, control, communications, computers, cyber-defense, combat systems (C6) and intelligence, surveillance and reconnaissance (ISR) systems and products.

Source: Dividend Investor

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