The defense sector is a good place for investors who are looking for both growth and value. While it's not one of the entitlement programs that take up a significant part of the Federal budget, it's not an insignificant line item.
That's important to remember when you hear that the Congressional Budget Office projects defense spending will decrease from 2.9% of GDP to 2.5% in the next 10 years. However, in terms of absolute dollars, the amount spent on defense will continue to be around, or even surpass, the $767 billion spent on defense in 2023.
How could it not? No matter who wins the election in 2024, the current geopolitical climate has the government on the hook for wars on two fronts.
Fortunately, many of the stocks in the defense sector are among the bluest of blue-chip stocks - meaning they give investors reasonable expectations for capital appreciation and solid dividend growth.
Click the "Continue to Slide #1" button to view the first company.
