Shares of US defense contractors dropped by as much as 5% after reports that President Trump may prohibit dividends and stock repurchases. The top seven US defense contractors have repurchased $128 billion in stock over the last 10 years, representing about 2.5% of their average market capitalization. Boeing stopped share repurchases in 2019 and reversed all buybacks since mid-2017, when it issued $18 billion in new shares. Despite the selloff, US defense contractors are mostly fairly valued, ranging from 93% of fair value for Boeing to 110% for RTX.

Read more at Morningstar: US Defense Stocks: Trump’s Buybacks Comment Roils Share Prices