Tuesday, July 29, 2008

Top Yielding Defense and Aerospace Stocks

I think that it is a good idea to own at least one defense stock before October. Many of the defense and aerospace stocks have dropped in price during the last couple months, which may be a buying opportunity. While you are waiting for them to move up, you can receive dividends on the higher yielding stocks. All of the following have yields above 1.2%, PEG ratios below 2, and all but one with a PE below 16.

Embraer, also known as Empresa Brasileira De Aeronutica S.A. (ERJ) based in Brazil, makes and markets jets and aircraft for defense and civil aviation markets. The stock has a PE of 12, a PEG of 0.81, and pays a yield of 2.7%.

Boeing (BA) makes and markets jets, military aircraft, missile defense systems, satellites, and launch systems. The stock has a PE of 11, a PEG of 0.82 , and pays a yield of 2.4%.

Northrop Grumman Corp. (NOC) provides aerospace products, electronics, and shipbuilding to the military, government, and commercial customers. The stock has a PE of 14, a PEG of 0.98 , and pays a yield of 2.4%.

Raytheon (RTN) has six divisions: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The stock has a PE of 10, a PEG of 1.11 , and pays a yield of 1.9%.

General Dynamics Corp. (GD) manufactures aviation products, combat vehicles, weapons systems, and munitions. The stock has a PE of 15, a PEG of 1.46 , and pays a yield of 1.7%.

Lockheed Martin Corporation (LMT) manufactures military aircraft, and air vehicles, including the F-35 Joint Strike Fighter, the F-22 air dominance attack aircraft, and the F-16 multi-role fighter. The stock has a PE of 14, a PEG of 1.18 , and pays a yield of 1.6%.

Elbit Systems Ltd. (ESLT) is an Israeli company that makes unmanned air vehicles; advanced electro-optic and space technologies, electronic warfare suites, airborne warning systems, electronic intelligence systems, military communications systems. The stock has a PE of 27, a PEG of 1.98 , and pays a yield of 1.4%.

If you like high yield stocks, you should also consider Top Monthly Dividend Stocks, Top Yielding NYSE Stocks, and Stocks with Tax Free Dividends.

Author does not own any of the above.

By Fred Fuld at Stockerblog.com

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