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.
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