Lockheed Martin Corp (NYSE:LMT)

4.3% Div
largest Defense contractor will not have trouble finding work During these trying times.

For reference point and to allow for comments by others. As of the end of March, 2013.

ROE 302.40%
Trailing PE 12.36
PB 111.19
Div yield 4.30%

fstg experiment

They got big defense contracts. They have designed littoral combat ships that fits the new trend in the US navy and have experience with the first versions of these.
They are innovative. They have developed an ultra efficient graphene water filter, Nemesis a new man born missile for forward deployed troops and apparently fusion power that should be ready for 2017.
Their stock is fairly cheap when looking at the price/sales ratio of 0.66 and a trailing P/E of 11.34. They have a lot of debt, but their revenue is growing.
They give a dividend of 4,4%, based on a 50% payout ratio.
If a conflict is started in North Korea, this stock might benefit.

a dirt cheap p/e, a solid dividend, AND they have solved one of the greatest threats to the existence of mankind: cheap desalinated water.

for all the garbage in the news, LM's efforts to bring fresh water to the masses reminds me that there is still a lot of good in the world.

graphene development for salt water de-salination!

This pick to keep an eye on this water filtration technology a farmer was just raving to me about.

http://voices.yahoo.com/lockheed-martin-develops-water-filter-12059011.html?cat=15

Lockheed is starting to build LNG tanks for marine
uses at a NASA plant in New Orleans. It is also
working on graphene sheet technology which might be
the next big leap in building CNG and LNG tanks.
This would allow thinner, lighter tanks that hold
more fuel and better mpg. It would also hasten
the uses for aircraft, due to lighter stronger tanks. They are already very strong though. This
might be a long term development.

If they can deliver on their fusion power claims, it would literally be world changing.

Magic formula pick

Budget pressure from the US Gov't is going to put downward pressure on earnings and will hamper R&D

Great Div. Yield and Payout Ratio.

Strong, multifaceted government contracts that subsidize its growth in other sectors. Coupled with good dividend history, this is more than a decent investment.

Lockheed and many other companies will continue to profit so long as there is a global threat to contend with -- regardless of military spending on US soil. DOD budget is cyclic despite possible acquisition cuts today.

Defense cuts

High yield strategy: TMFHighYield says to look for "high dividend payers from the S&P 500 from diverse sectors, relatively low debt, and a history of increasing dividend payments." This is my Industrial Goods pick.
$91.35

sequestration

The Raptor is expensive, but damn, it's cool.

Defense contracts aren't going anywhere