Out Fox The $treet

 Summary Lockheed Martin reported mixed Q314 earnings Investors should sell the stock with limited upside from these levels. The original investment thesis anticipated that the stock could start facing issues with lower capital returned to shareholders due to the higher stock prices.  Lockheed Martin (NYSE: LMT ) reported that Q314 earnings beat analyst estimates when including money saved on pension plans. The defense firm continues to see revenue fall and now forecasts single digit declines in 2015. The mixed results sent the stock down in a very bullish day for the stock market with the S&P 500 index up close to 2%.  Read full article at Seeking Alpha.   Disclosure: No positions mentioned. Please read the disclaimer page for more details.

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. 

Lockheed Martin Corporation (LMT) continues to report earnings that prove revenue growth can be over rated. The defense contractor reported Q3 2012 revenue that slightly dropped from the $12.1B in 2011, yet the company managed to beat earnings estimate and hike the dividend yield by 15%. The amazing story about this stock is that even with the stock hitting multi-year highs, the stock will now yield 5% after this hike to a $1.15 dividend per quarter. Read the full article at Seeking Alpha. Disclsoure: Long LMT. Please review the disclaimer page for more details. 

This model was down 0.5% in July versus a 1.3% gain for the benchmark S&P 500. Oddly the model has fluctuated a lot in recent months with large cap stocks in the model moving up or down 10% on earnings reports. While typical of smaller companies this usually doesn’t happen in companies with market caps exceeding $10B. Trades As mentioned previously, one goal of this model is to slowly trim the amount of positions back closer to 20 after reaching 26   due to mergers and partial positions. Hence, the model sold the remaining holdings in Home Depot (HD) and added to existing small positions in Hartford Financial (HIG) and WellPoint (WLP). Home Depot was unloaded as the stock finished a long run from October last year where the stock went from just over $30 to the selling price over $51. This considerable gain pushed the Net Payout Yield (NPY) down as the company dropped buybacks. Not to mention that competitor Lowes (LOW) remains a Top 5 holding. The two purcha...

Nothing like taking a financially strong sector combined with fears of cutbacks to provide for some exciting yields. With major government budget cutbacks expected in the US, the defense sector went through a few rough quarters in 2011. Investors feared the worse. At the end of the day though, the companies remain strong and according to a Bloomberg report, most of the top dividend yielding stocks in the Capital Goods sector belong to the defense sector. Read the full article at Seeking Alpha. Disclosure: Long LMT and RTN. Please read the disclaimer page for more details. 

After about 14 months of running a Net Payout Yields Model on Covestor, I'm still stunned how few people understand the concept or even incorporate it into investing. Net Payout Yields are the combination of the ever popular dividend yield and the always controversial net stock buyback yield. Or another way, the yield a company pays out to shareholders. No preference is given to whether the yield is obtained via dividends or buybacks. It seems that most investors are in love with the dividend paying stocks, but hardly anybody can get behind stock buybacks. Oddly though, very few investors take advantage of the combination. Read the full article at Seeking Alpha.  Disclosure: Long DTV, LMT, TRV, LO, WLP. Please read the disclaimer page for more details. 

Today Lockheed Martin ( LMT ) announced an additional $1B stock buyback on top of the current $3B authorization that is expected to reach its limit soon. While the news appears good, market analysts have lately become very bearish on stock buybacks. See  interview  of Joshua Brown from Fusion Analytics. Note though he claims Cisco Systems ( CSCO ) is the worst in issuing new shares, the latest quarterly report shows a nearly 300M share drop from last year - 5,795M to 5,496M shares. The key points missing from this interview is that investors naturally want to focus on companies that actually follow through on the announcement and ones that have net buybacks, ones that reduce the outstanding shares rather than just replacing the stock option issuance. Read the full article at Seeking Alpha.  Disclosure: Long CSCO and LMT in Net Payout Yield modle. Please review the disclaimer page for more details. 

Both Lorillard (LO) and Lockheed Martin (LMT) were added to the Net Payout Yields portfolio. This model is now available on Covestor . Lorillard provides a 5.4% dividend yield in addition to a generous buyback over the last 12 months making it's Net Payout Yield of 11.8% one of the highest yielding stocks with a market cap in excess of $10B. Tobacco stocks continue to pay high dividends as investors ignore them because of their social believes. At Stone Fox Capital, we strive for the highest legal return and if you wish any gains from a socially unacceptable stock can be given back to charity.  Lockheed Martin also provides a very generous dividend yield of 4.4% combined with a big buyback for a NPY of 11.8% as well. Defense stocks have been under pressure of late with expectations for cutbacks in the US. Apparently management disagrees whether they expect higher sales in emerging markets to fill in holes as the US cuts back or if the US just doesn't cut that many programs. ...