Top 17 Defense Stocks with Dividends for High Returns in 2024

Are you looking for reliable income with potential in the defense industry?

In an ever-evolving economic landscape, seeking secure avenues for long-term financial growth remains paramount. For investors eyeing stability and consistent returns, the defense sector offers a compelling prospect. 

With its resilient nature and robust dividend-yielding stocks, the defense industry presents an intriguing opportunity to secure reliable income streams while potentially capitalizing on the sector’s continued growth and innovation.

Best Defense Stocks with Dividends

Lockheed Martin

With a dividend yield of 2.84% and a modest payout ratio of 43.26%, Lockheed Martin continues to draw investor attention, showcasing a balance between dividend distribution and retained earnings, indicating stability and potential for sustained growth.

>> Lockheed Martin Dividend History

Booz Allen Hamilton

Booz Allen Hamilton, boasting a dividend yield of 1.60% and a relatively high payout ratio of 81.08%, reflects a commitment to shareholder returns. However, the elevated payout ratio suggests a need for careful monitoring of future dividend sustainability and company reinvestment strategies.

>> Booz Allen Hamilton Dividend History

Raytheon Technologies

As the dividend yield and payout ratio for Raytheon Technologies are currently unavailable, investors are advised to conduct thorough due diligence to evaluate the company’s dividend policy, financial stability, and growth prospects before considering investment in this stock.

>> Raytheon Technologies Dividend History

Northrop Grumman

Northrop Grumman, with a modest dividend yield of 1.58% and a low payout ratio of 23.68%, signifies a balanced approach to dividends and reinvestment. Its conservative payout ratio implies the potential for sustained dividend payouts alongside continued company growth and expansion.

>> Northrop Grumman Dividend History

General Dynamics

General Dynamics, with a competitive dividend yield of 2.22% and a moderate payout ratio of 43.61%, demonstrates a commitment to rewarding shareholders while retaining ample earnings for potential future endeavors. The balance in the payout ratio suggests a healthy financial position and the potential for sustained dividend growth.

>> General Dynamics Dividend History

Target

Target, with a generous dividend yield of 4.10% and a reasonable payout ratio of 59.26%, presents an attractive option for income-seeking investors. The balance in the payout ratio suggests a commitment to sustaining dividends while allowing room for future growth and investment.

>> Target Dividend History

Mowi

Mowi, boasting a notable dividend yield of 4.49% and a minimal payout ratio of 4.49%, offers investors an enticing combination of substantial dividend returns and the potential for significant reinvestment into the company. The low payout ratio signals ample room for further dividend growth.

>> Mowi Dividend History

Heico

Heico, with a modest dividend yield of 0.13% and a low payout ratio of 6.97%, indicates a cautious approach to dividends and reinvestment. The conservative payout ratio suggests the company’s focus on retaining earnings for potential future expansion and development.

>> Heico Dividend History

Textron

Textron, with a minimal dividend yield of 0.11% and a conservative payout ratio of 1.73%, reflects a conservative dividend policy aimed at retaining earnings for future company growth. The low payout ratio suggests the potential for increased dividends in the future.

>> Textron Dividend History

Elbit Systems

Elbit Systems, with a stable dividend yield of 1.08% and a moderate payout ratio of 33.56%, portrays a balanced approach to dividends and company reinvestment. The moderate payout ratio indicates the potential for sustained dividend payouts alongside continued company growth and development.

>> Elbit Systems Dividend History

Woodward

Woodward, with a modest dividend yield of 0.74% and a moderate payout ratio of 24.77%, reflects a balanced approach to dividends and retained earnings, indicating potential stability and room for future growth and investment.

>> Woodward Dividend History

Hexcel

Hexcel, boasting a significant dividend yield of 4.49% and a low payout ratio of 4.49%, presents an appealing opportunity for investors seeking substantial dividend returns. The low payout ratio suggests potential for further dividend growth and company reinvestment.

>> Hexcel Dividend History

Thales

Thales, with a competitive dividend yield of 2.08% and a reasonable payout ratio of 52.64%, signifies a commitment to rewarding shareholders while maintaining a balance between dividends and retained earnings for potential future ventures and expansions.

>> Thales Dividend History

Dassault Aviation

Dassault Aviation, with a stable dividend yield of 1.61% and a moderate payout ratio of 30.74%, showcases a balanced approach to dividends and reinvestment. The moderate payout ratio implies the potential for sustained dividend payouts alongside continued company growth and development.

>> Dassault Aviation Dividend History

MTU Aero Engines

MTU Aero Engines, with a competitive dividend yield of 1.83% and a moderate payout ratio of 37.56%, demonstrates a commitment to rewarding shareholders while maintaining a balance between dividends and retained earnings for potential future investments and growth.

>> MTU Aero Engines Dividend History

Safran

Safran, with a modest dividend yield of 0.92% and a low payout ratio of 18.39%, reflects a conservative approach to dividend distribution and reinvestment. The low payout ratio indicates the potential for sustained dividend growth and company development.

>> Safran Dividend History

Howmet Aerospace

Howmet Aerospace, with a minimal dividend yield of 0.46% and a conservative payout ratio of 11.11%, signifies a cautious approach to dividends and retained earnings for potential future expansion and development. The conservative payout ratio suggests potential for increased dividends in the future.

>> Howmet Aerospace Dividend History

Are defense stocks with dividends a good investment?

Investing in defense stocks with dividends can offer a compelling opportunity for both stability and potential long-term growth. 

With the consistent demand for defense products and services, these stocks often showcase resilience even during economic downturns. 

Additionally, the regular dividend payments can provide investors with a steady income stream, making them an attractive option for those seeking a balance of income and potential capital appreciation in their investment portfolios. 

However, it’s crucial for investors to conduct thorough research, considering factors such as geopolitical trends, government budgets, and technological advancements, to make informed decisions and mitigate risks associated with this sector.

Factors to Consider when Investing in defense stocks with dividends

When considering investments in defense stocks with dividends, it is crucial to assess various factors. 

These include geopolitical tensions, government spending on defense, technological advancements, and the competitive landscape within the sector. 

Additionally, understanding the company’s financial health, management efficiency, and overall market conditions can provide crucial insights for making informed investment decisions within the defense industry. 

Conducting thorough due diligence and staying updated on relevant industry developments are key to maximizing the potential benefits while minimizing associated risks.



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