Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (50739)

2/2/2013 4:45:32 PM

From: E_K_S

Read Replies (3) | Respond to of 78462

Hi Paul -

RE: LMT and the other defense stocks in this sector

The author of this Seeking Alpha analysis does make a compelling argument for LMT

Buy The Unloved AeroSpace Sector On Its Pullback For Dividend Growth
Dividend Growth
Stock# YearsPriceYieldDGR: 1Yr3Yr5Yr10Yr

LMT	10	$86.87	5.3%	23.1%	19.6%	22.2%	24.7%
GD	21	$66.3	3.08%	9.3%	10.3%	12.7%	13%
RTN	8	$52.68	3.8%	15.9%	16.8%	13.9%	25.4%

* Price and yield as of Jan 31, 2013

I did notice the negative TBV for LMT so essentially there is little to no BV other than their "brand". I was surprised at the dividend growth rates for each company especially over the last 10 years. So perhaps that's a good thing.

The author ranks RTN as the best buy. For now, I think I will wait and put these stocks on my watch list.

EKS