How to Find the Best Defense Stock
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- Опубліковано 10 лис 2023
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The best defense stocks are defensive. That is, they're able to continue increasing dividends and earnings over time, regardless of what's happening in the economy. RTX Corporation, formerly known as Raytheon, is one of the three biggest defense stocks out there by market cap and sales. Raytheon stock used to be a dividend aristocrat before their merger with United Technologies which resulted in an aerospace & defense company called RTX. All large defense contractors also have a commercial element to them, and RTX is sitting at about 40% commercial. While the S&P500 no longer considers RTX to be a dividend aristocrat, we still consider them a dividend champion which raises some questions around whether their dividend sustained its growth track record or not. One of our underpaid analysts will be probing to see if this defense contractor belongs in our dividend investing universe alongside the only other aerospace and defense company in the list - General Dynamics. If you're a dividend growth investor looking for defensive defense companies, this video is a must-see.
RESEARCH PIECES USED IN THIS VIDEO:
1. How to Build A Great Dividend Portfolio
• How to Build A Great D...
2. The Dividend Aristocrats Explained Simply
• The Dividend Aristocra...
3. How to Find the Best Dividend Growth Stocks
• How to Find the Best D...
CHAPTERS:
Intro
What are defense stocks?
Aerospace and defense ETFs
The biggest defense stocks
Raytheon's leadership
How Raytheon became RTX Corp
Is RTX stock a dividend aristocrat?
Conclusion
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#dividendstocks
#dividendgrowth
#raytheon
#defensestocks
$RTX
#RTX
Would Palantir be considered a defense stock? At least judging by revenue?
One of my better long term performers so far, which is also a dividend payer, has been L3Harris. I'm not primarily a dividend investor, but it is nice to own companies dedicated to working for their shareholders, and steady dividend increases are a sign of that.
The info you guys put out, both in videos and articles, is amazingly valuable. What is the best way to get access to all research Nanalyze puts out?
Good question. These industry classification firms have entire teams of analysts (probably algorithms by now) scouring SEC filings to determine appropriate industry classifications. Those are critically important to determine performance attribution for sectors/industries - birds of a feather move together. You can assign them manually in the case of Palantir, but the market pays attention to the formal classifications. Per L3, they're also a defense firm and good to hear they're establishing a track record.
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Thank you for your interest and kind words! Joe P.
Quite bullish on RTX myself. They were hit a little too hard over their P&W engine issue, which made them very attractive even before Hamas decided to kick off all out war.
We didn't dig into the engine issue much, but that's a good thing to dig into for current or would-be investors.
$LMT is my choice. Always good to have a defensive stock in one’s portfolio
A defensive defense stock is always good to have in one's portfolio
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I've been following your content for a few months now.
I'm defintely going to join your news letter.
i've been thinking too.. I'm curious about the workflow for solo investors like myself in terms of information gathering and investment management. Specifically, how should investors approach information sifting and collection on a daily, weekly, monthly, quarterly, and annual basis?
For the diligent "bar-of-soap" investor who handles the portfolio religiously, versus the more relaxed "oh no, I forgot I bought that stock" investor, what should each type focus on? What news and balance sheet details are essential, what resources would you suggest for all-in-one solutions. What is the status of financial data. Decentralized soon? :(
A video on the best practices and strategies for both proactive and passive investors would be incredibly valuable, especially from your perspective.
Thanks!
Information gathering and investment management will depend on the investor's methodology and choice of products. ETFs require a lot less hand holding than tech stocks. When you talk about "all-in-one solutions" it really depends on what you're investing in. Have a spreadsheet for sure. Break out your asset classes and stock portfolios. Decide how often you want to check in. Quarterly? For a 30-stock portfolio that's 120 events a year or one event every 3 days or so. Do you really want that much work?
We do this for a living and still check in once a year (year-end is always a good time) barring any major events or sharp drops in price that may signal a systemic problem. There is no right answer really. Each investor will have tolerances and needs.
Financial data getting decentralized would be great, but it's quite nuanced. It works better when you have a centralized decision maker. We pay Nasdaq a sizable sum for their data because it can be largely trusted. The idea of decentralized data is a good one. Maybe someone in the open source community will run with that. All we an really talk to is our own strategies which we talk about ad nauseum and take into practice the principles of risk management.
Thank you for the thoughtful comment! Will consider your suggestions. Joe P.
Im up almost 20% on this stock, even after the engine ordeal, and that dosnt even bother me, but what does bother is the fact that they sold their cyber security department for a couple pennies (1.5B). In this day and age thats the biggest red flag for me.
As we speak lockheed martin is considering having their own cyber security, this feels like a move going backwards for rtx.
Look at how much competition there is in cybersecurity though. Maybe it was the right call.