Even when the stock market is showing signs of excess there are always pockets of value. One of those pockets at the start of 2021 was the defense industry. We added the stock of Northrop Grumman to our dividend growth portfolio based on its growing U.S. nuclear monopoly and history of returning excess capital back to shareholders.
Northrop Grumman is building the engines for the submarine-launched nuclear missiles, it won the contract for the new long-range bomber, and it won the contract to build out the new ICBM/Missile defense system. Glenn Busch breaks down how the F-35 and Northrop Grumman's trusted partner status will lead to future price appreciation and dividend growth too. Then Glenn discusses the potential risks to our investment like defense spending cuts. And at the end, Glenn discusses our estimate of fair value and the price range we'd be willing to pay for a high-quality company.