6 Defense and Industrial Stocks to Buy and Hold Through 2030
These companies offer investors a mix of exposure to higher-growth aerospace/industrial end markets and the stability of investing in the defense industry.
Overview
The case for combining a cyclical industrial business (in this case, aerospace) with a more stable defense business is compelling. The reliable, long-term income from a defense business smooths out the ups and downs of industrial-side income. It enables companies like RTX (NYSE: RTX) and GE Aerospace (NYSE: GE) to commit to multibillion-dollar investments in developing long-cycle products such as aircraft engines. Here's a look at them and four other attractive companies.
As the company with the largest long-term defense exposure, the key to the investment case for RTX is the balance between the commercial aerospace business in Pratt & Whitney (aircraft engines, largely commercial aerospace but also defense), Collins Aerospace (heavily focused on commercial aerospace structures and components), and Raytheon (almost entirely defense).
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Originally published at www.fool.com.