Out Fox The $treet

Though investors had every right to expect the defense sector to struggle over the last year, the way defense stocks Lockheed Martin ( NYSE: LMT     ), Northrop Grumman ( NYSE: NOC     ), and Raytheon ( NYSE: RTN     ) spent their precious shareholder capital sent other signals. Coming into 2012, these three businesses poured substantial amounts into share buybacks. In addition, all three pay solid dividends, providing astute investors signs that their ability to generate strong cash flows might have exceeded the market's expectations. Read the full article here . Disclosure: Long LMT and NOC. Please review the disclaimer page for more details. 

The defense sector has been under attack for the last few years as federal government budget cuts pressure the major companies in the sector. The surprising part is that the associated stocks continue to support very strong dividend yields combined with major stock buyback programs. Lockheed Martin (NYSE: LMT ) , Northrop Grumman (NYSE: NOC ) , and Raytheon Company (NYSE: RTN ) have not only survived the cuts, but in most cases the companies more » Disclosure: Long LMT, NOC, RTN. Please review the disclaimer page for more details.