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Top Dividend Stocks That Rise During the Current Gulf War
With U.S.-Israeli strikes on Iran escalating into open conflict and Trump pledging Navy escorts for Gulf shipping, we must address it: dividend stocks during wartime.
We invest for income and growth, yet wars disrupt markets. Reality demands we adapt.
Last weekend's headlines—drones, strikes, oil risks—hit close to home. But our focus remains protecting and growing portfolios through reliable payers that thrive amid conflict.
People are busy discussing a variety of assets, including gold, silver, oil, and stocks. So, let’s discuss these one by one.
Q: Should we buy oil stocks now?
In short—no, not aggressively at current levels.
As contrarians, we buy energy when it's out of favor or overlooked. Oil has surged 14% since the conflict intensified, with VLCC rates hitting records and Brent climbing on Gulf fears. Headlines scream bullishness—time to be cautious.
Recall 2022: Russia's Ukraine invasion spiked oil briefly, then prices reversed as supply fears eased. Chasing rallies often leads to buying highs.
Natural gas offers a better backdoor play, trading at multi-year lows with less hype. We loaded up on names like Antero Midstream (AM) and EQT Corp (EQT) months ago—they've rallied nicely. Patience pays; avoid chasing energy on war headlines. Natural gas still has near-term upside.
I’ll be honest, my biggest investing mistake wasn’t a bad stock. It was not starting sooner… and not buying enough of the right kind of assets.
You’ll hear:
how dividend income compounds quietly over time
why waiting “until later” is the most expensive decision
how small positions today can turn into meaningful income later
This isn’t about finding the next big winner.
It’s about building something that supports you year after year.
Five minutes now beats years of regret later.
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Q: What about defense stocks?
This is where the real opportunity lies. Military budgets are exploding—NATO commitments, Middle East escalation, Pacific tensions. Defense primes are seeing order surges.
We already saw Palantir jump about 10% in two days despite controversies. This shows that names that are linked to defense have scope to grow.
L3Harris Technologies (LHX) stands out as a strong dividend play. It yields about 2.3% today—modest on the surface—but the company consistently raises payouts, acting as a "dividend magnet" that pulls the share price higher over time.
LHX's dividend growth has been impressive even in calmer periods. Now, with missile defense, hypersonics, and communications in high demand (e.g., recent $3.69B Navy contract and Aerojet Rocketdyne acquisition boosting missile tech), upside accelerates.
The stock trades at around 15x forward earnings, with free cash flow expected to jump 40% by 2026. Management has repurchased shares aggressively, signaling confidence.
Defense stocks like LHX benefit from multi-year government contracts—recession-resistant and geopolitically driven. As the Iran conflict drags on, expect sustained demand for air, sea, land, and space systems.
Other dividend-paying defense names—Lockheed Martin (LMT ~2%), General Dynamics (GD ~1.6%), Northrop Grumman (NOC ~1.2%), RTX—have surged recently on escalation news, offering income plus growth. We also thikn that Exxon Mobil (XOM) can be a good pick, in addition to Antero Midstream (AM) and EQT Corp (EQT).
Q. What about crypto?
Given how Bitcoin and other names have fallen, it looks like a good time to invest in crypto but we don’t suggest that you go all out because:
Crypto is highly volatile and can fall further
There appears to be no connection between digital coins and war
Bottom line
Avoid chasing overheated oil. Tilt toward patient energy dips (especially natural gas) and load up on dividend-growing defense contractors like LHX. These provide steady income while capitalizing on inevitable budget increases.
Wars are tragic, but portfolios must adapt.
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