Top 10 Best Defense Stocks in the USA: A Complete & Easy-to-Understand Guide
The defense sector has always been one of the strongest pillars of the U.S. economy. Every year, the government spends billions on military technology, cybersecurity, aircraft, warships, and advanced weapons systems. For investors, this creates a powerful opportunity — defense companies often receive long-term government contracts, which means more stable revenue and consistent growth.
If you’re planning to invest in this sector, here is a simple and human-friendly guide to the top 10 best defense stocks in the USA, along with what makes each company worth considering.
1. Lockheed Martin Corporation (NYSE: LMT)
Overview:
Lockheed Martin is the world’s biggest defense contractor. The company is best known for the F-35 fighter jets and also works on space missions, missile defense, and advanced cybersecurity.
Key Points:
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Market Cap: $120B+
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Revenue (2024): ~$66B
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Dividend Yield: 2.7%
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Major Projects: F-35 program, hypersonic weapons, NASA partnerships
Why It’s a Good Buy:
Lockheed’s long-term contracts and diversified defense capabilities make it one of the safest bets in this sector.
2. Raytheon Technologies Corporation (NYSE: RTX)
Overview:
Raytheon is a major name in both aerospace and defense. It produces missile systems, defense radars, and jet engines through Pratt & Whitney.
Key Points:
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Market Cap: ~$130B
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Revenue (2024): $70B+
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Dividend Yield: 2.3%
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Major Projects: Patriot Missiles, hypersonic systems
Why It’s a Good Buy:
Raytheon benefits from defense spending as well as commercial aviation, providing a strong and balanced revenue base.
3. Northrop Grumman Corporation (NYSE: NOC)
Overview:
Northrop Grumman is a leader in aerospace, autonomous systems, and space technology. It is the company behind the U.S. Air Force’s new B-21 Raider bomber.
Key Points:
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Market Cap: ~$80B
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Revenue (2024): ~$39B
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Dividend Yield: 1.8%
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Major Projects: B-21 Raider, Global Hawk drones, space systems
Why It’s a Good Buy:
If you want exposure to the future of unmanned tech and space defense, Northrop is an excellent choice.
4. General Dynamics Corporation (NYSE: GD)
Overview:
General Dynamics builds combat vehicles, submarines, and the famous Gulfstream business jets.
Key Points:
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Market Cap: ~$70B
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Revenue (2024): $40B+
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Dividend Yield: 2.4%
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Major Projects: Columbia-class submarines, Pentagon IT solutions
Why It’s a Good Buy:
Its wide range of products and strong relationships with the U.S. military add stability to your portfolio.
5. Boeing Company (NYSE: BA)
Overview:
While Boeing is mostly known for commercial airplanes, it also plays a huge role in defense — producing military aircraft, satellites, and space vehicles.
Key Points:
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Market Cap: ~$110B
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Revenue (2024): $80B+
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Dividend: Currently suspended
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Major Projects: KC-46 tanker, Starliner spacecraft
Why It’s a Good Buy:
Boeing’s combination of aviation and defense gives it an edge, and its long-term recovery looks promising.
6. L3Harris Technologies (NYSE: LHX)
Overview:
L3Harris builds communication equipment, electronic warfare tools, and surveillance systems.
Key Points:
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Market Cap: ~$40B
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Revenue (2024): ~$17B
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Dividend Yield: 2.0%
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Projects: Tactical radios, autonomous naval vehicles
Why It’s a Good Buy:
The increasing demand for secure communication and ISR (intelligence, surveillance, reconnaissance) makes L3Harris a rising star.
7. Huntington Ingalls Industries (NYSE: HII)
Overview:
This company is America’s largest military shipbuilder. It designs aircraft carriers, submarines, destroyers, and more.
Key Points:
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Market Cap: ~$10B
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Revenue (2024): ~$9B
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Dividend Yield: 2.5%
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Major Projects: Virginia-class submarines, Gerald R. Ford carrier
Why It’s a Good Buy:
Shipbuilding is a long-term business, and Huntington Ingalls consistently wins major contracts.
8. Textron Inc. (NYSE: TXT)
Overview:
Textron makes Bell helicopters, military vehicles, training aircraft, and drones.
Key Points:
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Market Cap: ~$16B
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Revenue (2024): ~$14B
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Dividend Yield: Low (0.1%)
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Major Projects: V-280 Valor tiltrotor aircraft
Why It’s a Good Buy:
Its focus on next-generation aircraft and mobility technology positions Textron well for future defense programs.
9. Kratos Defense & Security Solutions (NASDAQ: KTOS)
Overview:
Kratos is smaller compared to giants like Lockheed, but it is known for its innovation in unmanned aircraft and satellite systems.
Key Points:
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Market Cap: ~$1.8B
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Revenue (2024): ~$1B
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Dividend: N/A
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Projects: Valkyrie drones, microwave electronics
Why It’s a Good Buy:
Kratos is ideal for investors who want high-growth potential in cutting-edge defense tech.
10. AeroVironment Inc. (NASDAQ: AVAV)
Overview:
AeroVironment specializes in small, lightweight drones used in modern warfare and surveillance.
Key Points:
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Market Cap: ~$3B
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Revenue (2024): ~$500M
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Dividend: N/A
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Projects: Switchblade drones, tactical UAVs
Why It’s a Good Buy:
As drone usage increases worldwide, AeroVironment has a strong opportunity to expand.
Final Thoughts
Defense stocks offer a unique blend of stability, government-backed revenue, and long-term growth potential. The companies listed above represent a mix of industry giants and innovative newcomers — giving investors a wide range of choices depending on their risk appetite.
Whether you want steady dividends, exposure to futuristic military tech, or a balanced long-term investment, the U.S. defense sector delivers strong opportunities.
Disclaimer
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Somnath Das is not a SEBI-registered or U.S. SEC-registered financial advisor. Readers should always do their own research or consult a licensed financial professional before making any investment decisions.
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