Concerns about cutbacks in defense spending occasionally weigh
on names in IBD's Aerospace/Defense group. Wall Street will get
more color on the issue when several large-cap leaders in the
group report earnings this week.
A few aerospace names currently make the cut in today's
Dividend Leaders screen. All are holding near highs as they
consolidate gains. Pentagon contractorLockheed Martin (
) andRaytheon (
) were featured in this space on April 9 because of double-digit
dividend growth rates.
Lockheed Martin reported Q1 results Tuesday before the open.
Earnings came in better than expected at $2.87 a share, up 20%
from a year ago. After-tax margin rose to 8.8% vs. 7% in the
year-ago period. But sales fell 4% to $10.65 billion, the seventh
straight drop. The firm said domestic military sales are expected
to fall 6% this year after a 4% drop in 2013.
Lockheed Martin is working on a flat base, although an
Accumulation/Distribution Rating of D- gives pause because it
points toward intense institutional selling in recent weeks. The
annualized dividend yield is 3.3%.
Raytheon, which reports earnings Thursday before the open,
yields 2.4%. Analysts polled by Thomson Reuters expect profit to
rise 13% to $1.77 a share. Shares hit an all-time high Tuesday
ahead of the results.
Trading has been tight and orderly in Raytheon's flat base. It
currently shows a buy point of 102.25, although more aggressive
investors might have opted for an earlier entry at 100.91. Note
that recent gains have come in average or below-average
General Dynamics (
) andNorthrop Grumman (
), meanwhile, report earnings on Wednesday before the open.
Quarterly profit at General Dynamics is seen rising 1% to
$1.64 a share. Earnings at Northrop Grumman are expected to rise
6% to $2.15 a share. General Dynamics yields 2.3% and Northrop
Grumman yields 2%.