Northrop Grumman (NOC) is one of the five largest defense contractors to the U.S. government. The biggest unit is aerospace, which makes up 38% of revenue. Other divisions include electronic systems and information systems.
The $15 billion company's shares are down 0.3% this year, but have a three-year average annual return of 12.6%. The projected dividend yield is 3.5%. Northrop gets a 2% allocation in the portfolio and the stock was added Sept 16.
General Dynamics (GD), with a $23 billion market value, is a diversified government contractor operating with five divisions, among them aerospace and combat. The company makes everything from tanks to business jets but its big winner is its defense-oriented information-technology-systems unit. General Dynamics shares are down 8% this year, but have a 2.4% average annual return over three years. The stock carries a projected dividend yield of 2.96%. General Dynamics gets a 2% allocation in the portfolio, and it was added Sept 16.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV