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

Northrop Grumman

This was ranked as one of the top five defense contractors by sales last year, and it is on the BofA Securities US 1 list of top stock picks. Northrop Grumman Corp. (NYSE: NOC) provides innovative systems, products and solutions in unmanned systems, cyber, C4ISR and logistics and modernization to government and commercial customers worldwide. It also has one of America’s highest-paid CEOs.

The Aerospace Systems segment designs, develops, integrates and produces manned aircraft, unmanned systems, spacecraft, high-energy laser systems, microelectronics and other systems and subsystems.

The Information Systems segment offers advanced solutions for the Department of Defense, national intelligence and federal civilian, state, international and commercial customers. It provides products and services primarily in the fields of command and control, communications, cyber, air and missile defense, intelligence processing, civil security, health information technology, and government support systems.

The Technical Services segment provides logistics, modernization and sustainment services, as well as other advanced technology and engineering services, including space, missile defense, nuclear security, training and simulation services.

Shareholders receive a 1.61% dividend. BofA Securities has set a whopping $520 price target. The consensus target for Northrop Grumman stock is just $408.56, but shares closed trading at $390.60 apiece on Monday.

These top companies reported solid earnings, and the recent market pullback is giving investors a chance to buy the shares at very reasonable entry points. In what is a very overbought and expensive market, all four still offer compelling value and could be very timely ideas given the current geopolitical climate.

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