From Yahoo Finance: 2025-06-21 20:18:00

Tensions between Israel and Iran highlight the strategic value of defense stocks, such as Lockheed Martin (LMT), RTX, and Northrop Grumman (NOC). These companies offer stable revenue from government contracts and dividends. RTX, with $84.4B revenue in 2024, serves global allies, while NOC, with $43.7B revenue, focuses on diversified technologies. LMT, with $71B revenue, has strong international ties and a 2.75% dividend yield.

RTX, formed through a 2020 merger, operates through Collins Aerospace, Pratt & Whitney, and Raytheon segments, each contributing billions in revenue. The stock, with a 40% gain in the past year, appeals to income investors with a 1.8% dividend yield and 32 years of dividend growth. Wall Street gives RTX a consensus Moderate Buy rating.

NOC, formed in 1994, is a $72B company producing advanced technologies for aerospace and defense. The company reported solid revenue across its business units in 2024. With a 1.8% dividend yield and 35 years of dividend payments, NOC is a reliable dividend growth stock. Wall Street rates NOC a consensus Moderate Buy.

LMT, with a market cap of $112B, is an established player in aerospace and defense, generating $71B in revenue in 2024. The stock trades at a lower valuation than its peers and offers a 2.75% dividend yield, with 29 years of dividend payments and 22 years of increases. Wall Street gives LMT a consensus Moderate Buy rating.

All three companies offer a durable business model, government relationships, diversified revenue streams, reasonable valuations, above-average dividend yields, and impressive dividend growth records. Lockheed Martin stands out with the lowest valuation and highest dividend yield among the group.

Read more: 3 High Caliber Defense Stocks in a Dangerous Market