“Defense Spending Soars as Military Budgets Increase – How Investors Can Profit in 2025”
Military spending in the United States and Europe continues to rise, with no signs of stopping. Regardless of the 2025 White House winner, defense budgets are expected to increase, especially with Trump likely pushing for more aggressive spending. The Senate and Congress recently approved a higher military budget for the upcoming fiscal year, contributing to the global trend of defense spending growth for nine consecutive years.
With defense companies reporting strong financial results and raising profit forecasts, investors can capitalize on this trend in three ways:
1. X Defense Tech ETF: This ETF includes a mix of U.S. and European defense stocks, with top positions in companies like Lockheed Martin, RTX, and Northrop Grumman.
2. iShares U.S. Aerospace and Defense ETF: Investing in aerospace and defense companies, this ETF’s top holdings include Boeing, Lockheed Martin, and General Dynamics, with impressive yields over the years.
3. General Dynamics: An American aerospace and defense company with a strong financial track record, including a dividend increase for 11 consecutive years. The company is expected to see revenue growth and earnings expansion, with market potential reaching $324.
By considering these investment opportunities in the defense sector, investors can benefit from the ongoing increase in military defense spending and potentially see significant returns in their portfolios.