4 'Strong Buy' Dividend-Paying Defense Stocks to Grab Now With War in Ukraine Looming

The situation has become dicier every day, and while the invasion of Ukraine by the Russian Army has not started yet, some 130,000 troops are massed near the border. The Russian Foreign Minister did note that there may be a way forward with talks between the two countries, but the bottom line is Russia flexing its muscles in Eastern Europe is a massive wake-up call for the NATO allies.

Nobody wants the dogs of war to return once again. President Biden has made it clear the United States would not send troops into the region, but you can bet that the biggest countries in Europe, like Germany and France, are assessing their strength and readiness. All this could benefit some of the biggest aerospace and defense companies in the United States. Add to the equation an ever-growing threat from China, and other allies like Japan and Australia may be checking their military preparedness very closely as well.

We screened our 24/7 Wall Street research database looking for the top Buy-rated aerospace and defense companies that also paid solid and dependable dividends. We found four that are outstanding ideas now, especially with the market teetering on the abyss. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

General Dynamics

Like other major defense contractors, this submarine and tank builder looks poised to deliver solid numbers and guidance the rest of this year and perhaps beyond. General Dynamics Corp. (NYSE: GD) is engaged in business aviation, land and expeditionary combat vehicles and systems, armaments, munitions, shipbuilding and marine systems, and information systems and technologies.

Major products include Virginia-class nuclear-powered submarine and Ohio class replacement, Arleigh Burke-class Aegis, Abrams M1A2 tank, Stryker eight-wheeled assault vehicle, medium-caliber munitions and gun systems, tactical and strategic mission systems.

Investors in General Dynamics stock receive a 2.25% dividend. BofA Securities has a price target of $250 for the shares. The consensus target is posted lower at $237.53, and shares closed on Monday at $211.17 apiece.

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