3 Surprising Winners So Far in 2012

One surprisingly resilient sector this year has been defense. Pure-play defense stocks Lockheed Martin (NYSE: LMT  ) , Raytheon (NYSE: RTN  ) , and Northrop Grumman (NYSE: NOC  ) have all beaten the market so far year-to-date. Yet more diversified defense stocks such as Boeing (NYSE: BA  ) and General Dynamics (NYSE: GD  ) are losing by more than 10% so far. One prime reason for the sector win is that all these companies are cheap and are paying more than 3.3% in dividends, and both parties in Congress seem to agree that sequestration shouldn't happen. Still, Brendan explains in the following video below why he likes General Dynamics and Boeing to play out better in the long term.

If you're worried that defense cuts and sequestration down the road will derail these stocks, we have another great option for you. We've prepared a free report outlining The Motley Fool's Top Stock for 2012. In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.

Andrew Tonner and Brendan Byrnes have no positions in the stocks mentioned above. The Motley Fool owns shares of General Dynamics, Lockheed Martin, Northrop Grumman, and Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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