The defence sector has experienced a challenging period since the financial crisis. Cutbacks to military spending have become the norm across the developed world, as governments have sought to reduce budget deficits in an era of austerity. This has caused sales and profit growth to be lacking for many companies in the industry. However, the increased military spending plans of President Trump could be the catalyst for growth in the defence sector. Higher earnings could mean strong dividend growth, which could make these two defence stocks worthwhile buys for the long term. |
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