The Dividend Trash Pile

Defense spending has been elevated over the last two presidencies because of a pair of wars. Where you stand on their popularity is virtually meaningless, however, as both wars look set to be “ended” by the end of Obama's next presidential term. Despite the fact that Obama could hardly be called a dove, he has expressed an interest in cutting defense spending.

Wall Street hates uncertainty and there is a good deal of it right now for the defense industry. Even if sequestration is avoided, there is a good likelihood that the industry will still see budget cuts. With that as a backdrop, however, military spending has waxed and waned through the years and it will never go away. So there is still some long-term promise for those that can survive the current cutting mood. Three companies that were hit by the post Obama reelection market selloff that are worth at least keeping an eye on are Lockheed Martin (NYSE: LMT), General Dynamics (NYSE: GD), and Raytheon (NYSE: RTN).

Source: Motley Fool

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