Seeking Alpha

Matthew Potter's  Instablog

Matthew Potter
21 Followers
3 Following
Send Message
Matthew Potter is a contributor at DefenseProcurementNews.com (http://www.Defenseprocurementnews.com/) as well as writing about life and politics at his personal site. After serving in the US Navy, he began work as a defense contractor in Washington DC specializing in program management and... More
My blog:
Defense Procurement News
  • Analysts Continue To Focus On Dividends For Defense / Aerospace Stocks 0 comments
    Mar 20, 2012 11:12 PM | about stocks: NOC
    With the expected decline in U.S. defense spending there is going to be a great deal of pressure on the big industrial defense contractors. At the same time analysts are focusing on their dividends as the best play for them.

    Lockheed Martin (LMT) already pays $4.00 a year and leads the big contractors such as Boeing (BA), Northrop Grumman (NOC), Raytheon (RTN) and General Dynamics (GD) who have a range of $2.00 to $1.60.

    NOC is predicted to raise their dividend in the near term based on historical data. The other companies may follow as all experienced flat revenue in 2011 but were able to increase earnings due to cost cutting. Without dividend increases they may not be attractive to investors.

    Many of the companies like NOC and LMT are also utilizing stock buy backs to help with their valuations.

    All the current indications are that these companies will have little change in their stock prices so potentially there will be changes to their dividends.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: BA, LMT, GD, RTN Stocks: NOC
Back To Matthew Potter's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Full index of posts »
Latest Followers

Latest Comments


Most Commented
Posts by Themes
acquisition, aerospace, air force, ammunition, aviation, BA, budget, contract, cut, defense, defense department, dividend-ideas, dont-tag-as-pro, earnings, GAO, GD, India, industrial, investment, LMT, long-ideas, M A, Navy, procurement, protest, revenue, RTN, schedule, short-ideas, spending, test, uav
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.