The Russia-Ukraine conflict has intensified since the initial stages of the February 24, 2022 invasion. Recent reports suggest that Russia’s military has successfully encircled the Ukrainian capital of Kyiv. Negotiations are ongoing between both sides at the Belorussian border. In any case, it appears that the conflict may be reaching a head.
Investors need to prepare for a world in which great power conflict may come back to the forefront. In a huge policy turn, Germany moved to pledge a massive increase in military spending. Meanwhile, the United States has continued to ramp up defence spending regardless of which party has occupied the White House.
Lockheed Martin (NYSE:LMT) is a Bethesda-based security and aerospace company. It has spent many years over the past decade as the world’s largest defence contractor. Shares of Lockheed Martin are up 22% in 2022 as of close on February 28. This has pushed this top defence stock up 30% in the year-over-year period.
This company unveiled its fourth quarter and full year 2021 results on January 25, 2022. Net sales rose to $67.0 billion for the full year – up from $65.3 billion in 2020. Meanwhile, net earnings rose to $6.3 billion or $22.76 per diluted share for the full year. This represented another year of very solid improvement for the top defence contractor.
Shares of this defence stock still possess a favourable price-to-earnings ratio of 19. It also offers a solid 2.5% dividend yield.
