Top 5 Defense Companies To Own In Right Now

After bulling through March with strong spending despite the sequester, Pentagon contract awards fell off a cliff in early April. And what little money there was to spread around was often showered upon�non-traditional�recipients such as Madison Avenue advertising firm�Interpublic Group (NYSE: IPG  ) .

So what's really going on over there in Washington today? Is defense spending stalled, or will it rise again? And what does this mean for ultra-low-P/E-bearing stocks like Boeing (NYSE: BA  ) , Lockheed Martin� (NYSE: LMT  ) , Northrop Grumman� (NYSE: NOC  ) , and General Dynamics� (NYSE: GD  ) .

Motley Fool contributor Rich Smith let's you know the score...

Boeing operates as a major player in a multi-billion-dollar defense market in which the opportunities and responsibilities are absolutely massive. However, emerging competitors and the company's execution problems have investors wondering whether Boeing will live up to its shareholder responsibilities. In our premium research report on the company, two of The Motley Fool's best minds on industrials have collaborated to provide investors with the key, must-know issues surrounding Boeing. They'll be updating the report as key news hits, so don't miss out -- simply click here now to claim your copy today.

Hot Undervalued Companies To Watch For 2015: Air Industries Group Inc (AIRI)

Air Industries Group, Inc. (AIRI), incorporated on January 13, 2006, is an aerospace and defense company. The Company designs and manufactures structural parts and assemblies that focus on flight safety, including landing gear, arresting gear, engine mounts, flight controls, throttle quadrants and other components. It also provides sheet metal fabrication of aerostructures, tube bending and welding services. AIRI�� products are deployed on a range of military and commercial aircraft, including Sikorsky's UH-60 Blackhawk helicopter, Lockheed Martin's F-35 Joint Strike Fighter, Northrop Grumman's E2D Hawkeye, Boeing's 777, Airbus' 380 commercial airliners, and the US Navy F-18 and USAF F-16 fighter aircraft. On July 1, 2013, Air Industries Group Inc announced that it has acquired certain assets and the business of Decimal Industries (Decimal) of Copiague, Long Island, New York. On June 20, 2012, the Company, through a newly created subsidiary, Nassau Tool Works, Inc. (NTW), acquired from an unrelated company formerly known as Nassau Tool Works, Inc. (Old Nassau Tool) and its shareholders (the NTW Sellers) all of the assets of Old Nassau Tool. In November 2013, the Company announced that it has acquired Miller Stuart Inc of Hauppauge, Long Island, New York.

Air Industries Machining Corp.

AIM manufactures aircraft structural parts and assemblies principally for prime defense contractors in the defense/aerospace industry, including, Boeing, Goodrich Landing Gear, Sikorsky, Lockheed Martin, and Northrop Grumman. During the year ended December 31, 2012, approximately 90% of AIM's revenues were derived from sales of parts and assemblies for military applications. AIM's parts are installed onboard Sikorsky's U/MH - 60M/S Helicopters, known as The BlackHawk, Lockheed�� F35 Joint Strike Fighter (JSF), Northrop Grumman�� E2-C/D Hawkeye, the Airbus A-380 Super Jumbo airliner, and the C-17 Globemaster.

AIM is also a manufacturer of mechanical and electro-mechanical suba! ssemblies and an engineering integrator. As of December 31, 2012, AIM produced over 2,400 individual products (SKU's) that are assembled into electromechanical devices, mixer (primary flight control) assemblies, rotor-hub components for Blackhawk helicopters, arresting gear for the E2C/D Hawkeye, C2A Greyhound and United States Navy Fighters, vibration absorbing assemblies for Sikorsky helicopters, landing gear components for the F-35 Joint Strike Fighter (JSF), and many other subassembly packages.

Welding Metallurgy, Inc.

Welding Metallurgy, Inc. (WMI) provides specialty welding services and metal fabrications to the defense and commercial aerospace industry. Its customers include GKN Corporation, Sikorsky, Lockheed Martin, Boeing and Northrop Grumman. WMI�� product and service offerings include tube bending and metal fabrications of aircraft structures. WMI�� services and products are principally provided to prime contractors, aerospace engine manufacturers and to other subcontractors to aerospace manufacturers throughout the United States. Welding Metallurgy is a primary supplier on the Northrop Grumman E-2 C/D Hawkeye Program producing approximately 300 different parts annually. During 2012, nearly 100% of WMI�� revenues were derived from sales of parts and assemblies for military applications. WMI produces the inlet housing and the auxiliary long and short beams for the Sikorsky BlackHawk helicopter and various welded door and panel assemblies for the Boeing CH-47 Chinook Helicopter. WMI also provides environmental tubing to Lockheed for the F-35 Joint Strike Fighter.

Nassau Tool Works, Inc.

NTW�� principal business is the fabrication and assembly of landing gear components and complete landing gear for fighter aircraft for the United States and foreign governments. NTW also performs sub-contract machining for other aerospace manufacturers, including Air Industries. NTW is a manufacturer of complete landing gear and landing gear components! for the ! F-16 Fighting Falcon and F-18 Hornet aircraft of the United States Air Force and Navy. In addition NTW specializes in deep hole gun-drilling and trepanning and performs sub-contract machining services for prime contractors in the defense and aerospace industries.

The Company competes with Sterling Machine, Stellex Aerospace, Triumph Aerospace Group, Heroux Aerospace and Magellan Corporation.

Advisors' Opinion:

• [By Louis Navellier]

  Air Industries (AIRI) is an example of a company with great fundamentals that also pays a solid dividend right now. Air Industries makes flight-critical products including flight safety parts, landing gear and components, arresting gear, flight controls, sheet metal fabrications and ground support equipment. At the current price AIRI stock is yielding 6.32% after Air Industries raised the dividend back in March.

• [By Dividends4Life]

  Air Industries Group Inc. (AIRI), an aerospace and defense company, designs and manufactures structural parts and assemblies that focus on flight safety. Sept. 17, the company increased its quarterly dividend 100% to $0.125 per share. The dividend is is payable Oct. 15, 2013 to shareholders of record as of the close of business on Sept. 30, 2013. The yield based on the new payout is 6.9%.

• [By Diane Alter]

  Dividend Stocks That Increased Payout in September

  Accenture plc (NYSE: ACN) announced a 14.8%, or $0.12 per share, increase to its semiannual dividend. The management consulting firm will now pay a semiannual dividend of $0.93. Shares yield 2.53%. Agruim Inc. (NYSE: AGU) boosted its dividend by $1.00 per share to a total dividend of $3.00 on an annualized basis. Shares of the global retailer of agricultural products now sprout a 3.54% yield. Air Industries Group Inc. (NYSE: AIRI) doubled its dividend to $0.125 per share. The maker of airplane and helicopter parts now floats a lofty yield of 6.6%. Alexandria Real Estate Equities Inc. (NYSE: ARE) upped its dividend 4.6% to $0.68 per quarter for a yield of 4.21%. Banner Corp. (Nasdaq: BANR) boosted its quarterly dividend 25% to $0.15 per share. The parent company of Banner and Islander Bank serves the Pacific Northwest region. Brady Corp. (NYSE: BRC) lifted its quarterly dividend 2.6% to $0.78 per share. It was the 28th straight dividend increase from the identification solutions company. Shares yield 2.57%. Campbell Soup Co. (NSE: CPB) raised its quarterly dividend to $0.31 per share, up from $0.29. The company last raised its dividend in November 2010. Shares yield a hearty 3.06%. CLARCOR Inc. (NYSE: CLC) raised its quarterly dividend 26% to $0.17 per share. It's the largest percentage increase from the Tennessee-based diversified marketer of mobile filtration and packaging products in the last 20 years, and it continues the company's consecutive streak of increasing dividends for the last 30 years. Franklin Resources Inc. (NYSE: BEN) boosted its quarterly dividend 2.6% to $0.10 per share. Frisch's Restaurants Inc. (NYSE: FRS) increased its quarterly dividend 12.5% to $0.18. Shares yield 3.10% The Goodyear Tire & Rubber Company (NYSE: GT), in a move that suggests good times are ahead, reinstated its dividend at $0.05 per share. Good

Top 5 Defense Companies To Own In Right Now: Poly Shield Technologies Inc (SHPR)

Poly Shield Technologies Inc. (Poly Shield), incorporated on March 2, 2000, is a research, development and marketing company providing environmental, energy saving and durability solutions. The Company's are designed and manufactured under the advanced bio-scrubber technology and includes a line of protective fluoropolymer coatings. Poly Shield�� fluoropolymer products are manufactured at a production facility in Florida. Poly Shield�� manufactured fluoropolymer coatings are used in a number of different industries including marine, aerospace, oilfield, industrial, commercial, and residential applications. In addition, Poly Shield offers a line of antimicrobial coatings for use in hospital or food industries. In December 2013, Poly Shield Technologies Inc sold New World Technologies Group, Inc. to Viveros.

The Company's products include bio-scrubber, supershield, superiorshield and microshield. Its products are used in aerospace, cruise ship lines, marine, military, oil, and energy production industries. The Company's bio-scrubber is designed to remove alkali metals from fuel in an effort to protect gas turbines from high temperature corrosion. The technology has been installed on active ships within the cruise line industry.

SuperShield is a fluoropolymer coating that is formulated to work with a variety of residential, commercial, industrial and marine applications. It is a fluoroplymer resin that offers weathering ability and the choice of temperature curing. Its flagship product, SuperShield 100, containing fluoropolymer resins provides up to a 50 year service life on a steel and metal surfaces. Its SuperShield S is superhydrophobic and superoleophobic, with characteristic complex micro and nanoscopic surface, which minimizes adhesion. SuperShield S100 is also superhydrophobic and superoleophobic. SuperShield S100 is provides 50 year service life. The ultimate anti-fouling coating for ship hulls, oilfield rigs, heavy equipment, airplanes, bridges, etc.

! SuperiorShield is protective and energy saving roof coatings. Its superiorShield coating reduces heat transfer through infrared radiation, conduction and convection. SuperiorShield has the capability to reflect 90% of the suns ultraviolet (UV) rays.

MicroShield is a anti-microbial coating. MicroShield is an active antibacterial destroying the cell membrane and inducing oxidative deoxyribonucleic acid (DNA) and protein damage of microbes. It also acts as a bacteriostat, virostat and fungistat, inhibiting bacterial, viral and fungal growth.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Soul and Vibe Interactive Inc (OTCBB: SOUL), Globalstar, Inc (OTCMKTS: GSAT) and Poly Shield Technologies Inc (OTCBB: SHPR) have been getting some attention lately in various investment newsletters or investor alerts with at least two of these stocks being the subject of some sort of paid stock promotional or investor relations type of activities. With that in mind, just how hot are these three small cap stocks for investors or traders? Here is a quick reality check:

Top 5 Defense Companies To Own In Right Now: Spirit Aerosystems Holdings Inc.(SPR)

Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs and manufactures commercial aerostructures worldwide. It operates in three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs), as well as offers related spares, and maintenance, repair, and overhaul (MRO) services. This segment also offers rotorcraft comprising forward cockpit and cabin for military aircrafts. The Propulsion Systems segment engages in the development, production, and marketing of struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as provides related spares and MRO services. The Wing Systems segment develops, produces, and markets wings and wing components comprising flight control surfaces and other miscellaneous structural parts primarily to aircraft OEMs, as well as offers related spares and MRO services. This segment is also involved in designing, engineering, and manufacturing structural components for military aircrafts, including low observables that are radar absorbent and translucent materials; and radome new builds and refurbishment. It also provides other military services, such as fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. Spirit AeroSystems Holdings, Inc. serves large commercial airplanes, business and regional jets, and military/helicopter sectors of the aerostructures industry. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. is headquartered in Wichita, Kansas.

Advisors' Opinion:

• [By Ben Levisohn]

  Shares of Textron have gained 1.2% to $36.63 at 1:09 p.m., while Embraer (ERJ) has risen 0.5% to $32.30, Triumph Group (TGI) has advanced 0.2% to $75.73 and Spirit AeroSystems (SPR) is off 0.8% at $33.90.

• [By Jake L'Ecuyer]

  Spirit AeroSystems (NYSE: SPR) was up as well, gaining 6.74 percent to $32.48 as the company beat strongly on its top and bottom lines before the market opening Friday.

Top 5 Defense Companies To Own In Right Now: Rolls-Royce Holdings PLC (RYCEY)

Rolls-Royce Holdings plc, formerly Rolls-Royce Group plc is a provider of power systems and services for use on land, at sea and in the air. The Company operates in four segments: civil aerospace, defense aerospace, marine and energy. The civil aerospace is engaged in development, manufacture, marketing and sales of commercial aero engines and aftermarket services. The defense aerospace is engaged in development, manufacture, marketing and sales of military aero engines and aftermarket services. The marine segment is engaged in development, manufacture, marketing and sales of marine propulsion systems and aftermarket services. The energy segment is engaged in development, manufacture, marketing and sales of power systems for the offshore oil and gas industry and electrical power generation and aftermarket services. In January 2013, the Company bought PKMJ Technical Services. In January 2013, Alstom SA acquired Tidal Generation Limited from the Company.

During the year ended December 31, 2010, it acquired ODIM ASA. In June 2011, Daimler AG and Rolls-Royce Holdings PLC had secured around 94% interest in Tognum AG-DJ. In September 2011, the Company acquired R Brooks Associates.

Civil aerospace

The Company�� civil aerospace business provides the powers for 30 different types of commercial aircraft in a range of markets, such as widebody, narrowbody, corporate and regional aircraft. As of December 31, 2010, it had over 13,000 engines in service with 650 airlines, freight operators and lessors and 4,000 corporate operators. Its civil aerospace products include large aircraft engines, small aircraft engines and helicopter engines. The Company�� Trent 700 is an engine on the Airbus A330. The Trent 1000 is powering the Boeing 787 on the aircraft�� flight test schedule. It provides a range of services, such as TotalCare, CorporateCare, helicopters services, financial services, training and technical publications.

Defence Aerospace

The Compan! y is a provider of defence aero-engine products and services, with 18,000 engines in service for 160 customers in 103 countries. It is also the supplier of engines for transport aircraft globally, powering fleets, such as the C-130, C-130J, Spartan C-27 and Osprey V-22. It is also involved in research projects, such as Adoptive Versatile Engine Technology (ADVENT), which is designed to reduce fuel consumption. Its engines power aircraft in all sectors, such as transport, combat, reconnaissance, training, helicopters and unmanned aerial vehicles. The defense aerospace segment of the Company provides engines power aircraft in all sectors, such as transport, combat, reconnaissance, training, helicopters and unmanned aerial vehicles. Its products include combat jets, helicopters, transporters, trainers, tactical aircraft, unmanned aerial vehicles and distributed generation systems. It provides a range of services, such as training, technical publications and service locations.

Marine

The Company focuses on power, propulsion and motion control solutions and serves over 2,500 customers and has equipment installed on 30,000 vessels operating worldwide. As of December 31, 2010, the Company had 650 designed and equipped vessels operating in the offshore oil and gas sector. As of December 31, 2010, it had more than 2,500 marine customers and has equipment installed on over 30,000 vessels worldwide, including those of 70 navies. The energy business supplies gas turbines, compressors and diesel power units. Its products include automation and control, bearings and seals, deck machinery, electrical power systems, engines, gears, propulsors, ship design, shiplifts and submarine equipment. It provides a range of services, such as global support network, spares and tools, field shop services, technical support, training, tailored solutions and upgrading.

Energy

The Company is a provider of gas turbines for onshore and offshore applications. The Company�� energy busi! ness is e! ngaged in two activities: supply power to the oil and gas sector, and the provision of power generation products and services. Its products include gas engines, gas turbine engines, gas compression, diesel engines, fuel cells, and automation and control systems. Its services consist of long term service agreements, component supply and technical support, distributed generation systems and training. During the year ended December 31, 2010, it conducted a range of a tidal power turbine, anchored on the sea bed off the coast of Scotland. During 2010, this had generated 500 kilo-watt at full power and has been successfully linked into the national grid.

Advisors' Opinion:

• [By CanadianValue]

  At Rolls-Royce (RYCEY), new CEO John Rishton had a busy and fruitful start to his tenure. Most importantly, Rishton began to focus Rolls on areas where the company stood to improve, including cash generation, cost structure and customer service. He also successfully extracted the company from its legacy narrow body civil engine joint-venture with Pratt & Whitney (IAE) for an attractive price, positioned Rolls as exclusive supplier for the Airbus A350-1000, further secured the company�� strong position on the A350 program, and closed the tricky Tognum acquisition which will begin to bear fruit in 2012. While Rolls had not released its 2011 results as of the writing of this letter, both we and the markets expect the company to report mid-to-high single digits revenue growth and low-to-mid-teens earnings growth in the year past.

• [By Rich Smith]

  The Department of Defense awarded a round dozen defense contracts Friday, worth just under $7.2 billion in aggregate. The bulk of the contracts -- $7 billion worth -- were split among eight small privately held firms scattered around New Jersey, Maryland, Indiana, and Virginia contracted to supply software and systems engineering services in support of the Army's Software Engineering Center. But a handful of better-known -- and, more importantly to investors, publicly traded -- companies won contracts as well. Namely:

• [By Rich Smith]

  The Department of Defense ended the week with a bang (if you'll pardon the expression) on Friday, awarding no fewer than 29 separate contracts worth more than $951 million in aggregate. Publicly traded companies securing contracts included: