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Best defence stocks

Defence revenue is contracted by government budget, which makes it uncorrelated with the consumer cycle and correlated with geopolitics.

The screen: 9 US exchange-listed companies across 2 sectors (Technology, Industrials), 4 of which pay a dividend. Size mix: 6 large-cap, 1 small-cap, 2 micro-cap.

9Companies
2Sectors
4Dividend payers
5No dividend

What separates the winners from the losers here

The full list

9 defence stocks in the InvestingTrading US universe. This is a screen, not a recommendation.
TickerCompanySectorDividendWhat it is
PLTRPalantirTechnologyNoGovernment and enterprise data platforms with an AI layer.
BABoeingIndustrialsNoDuopoly aircraft backlog against execution problems.
LMTLockheed MartinIndustrialsYesProgramme-of-record defence revenue with a solid payout.
RTXRTXIndustrialsYesEngines and missiles with a large aftermarket.
NOCNorthrop GrummanIndustrialsYesStrategic programmes including the bomber and ICBM lines.
GDGeneral DynamicsIndustrialsYesSubmarines, combat systems and business jets.
RKLBRocket LabIndustrialsNoSmall-launch provider building a larger rocket.
BBAIBigBear.aiTechnologyNoGovernment-focused analytics with persistent losses and dilution.
LUNRIntuitive MachinesIndustrialsNoLunar lander contractor dependent on NASA award timing.

Where to buy them

To hold these as real shares you need a stockbroker rather than a CFD provider. If you only want exposure to the price movement, a share CFD does that with leverage — and without ownership.

PepperstoneCFD — no ownership
★★★★★★★★★★4.5

Non-US residents trading US shares as CFDs

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Capital.comCFD — no ownership
★★★★★★★★★★5.0

Small starting balances

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Charles SchwabOwns the share
★★★★★★★★★★4.5

US residents

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Frequently asked questions

How many defence stocks are in this list?

9, drawn from our US exchange-listed universe and spread across 2 sectors. 4 of them pay a dividend.

Is this a list of defence stocks to buy?

No. It is a screen — a defined, reproducible filter over a stated universe. A screen tells you which companies share a characteristic; it says nothing about whether the price you would pay today is a sensible one. Nothing here is investment advice.

What is the main risk with defence stocks?

Budget-cycle and political risk, plus fixed-price development contracts that have produced large write-downs.

How do I actually buy these from outside the US?

You need a broker that accepts your country of residence and gives you access to US exchanges. To own the shares outright, that usually means an international stockbroker plus a W-8BEN form to claim your treaty rate on dividend withholding.

Screen definition reviewed August 2026. Universe: US exchange-listed securities tracked by InvestingTrading. This page is information, not investment advice.