"This stock is still a buy here. I think that company will be pretty strong. I think it's terrific, I'd pull the trigger." ("Mad Money Lightning Round," 4-24-09)

As detailed in this space March 9, General Dynamics (GD), sixth-biggest in the defense industry, hiked its quarterly 8.6%, to 38 cents a share, from 35 cents. This company, too, is expected to benefit from greater equipment sales for its combat-systems group, in line with President Barack Obama's commitment to expand the Army and Marines. General Dynamics trades at around 43, and yields 3.52%.

Increase of 8.60%; raised the quarterly dividend to 38 cents from 35 cents, payable May 8 to shareholders of record as of April 10.

The world's sixth-largest military contractor, General Dynamics (GD), raised its quarterly common payout 8.6%, to 38 cents a share from 35 cents. Holders of record April 10 will get the new dividend May 8; the ex-date is April 7. This is the 12th consecutive increase by the 110- year-old Virginia company. It's paid dividends without interruption since 1979. General Dynamics shares have been hurt by fear that President Obama will sharply cut defense spending. But Collins Stewart analysts James McIlree and Christine Bae, who rate the stock Hold, contend that Obama's "commitment to expanding the Army and Marines...will result in greater equipment sales for the company's combat-systems group," which is expected to generate more than 30% of volume and 32% of operating income in 2009. The weak economy, however, is affecting sales of the company's Gulfstream business jets. General Dynamics has an order backlog of $74 billion. It posted a 5.7% advance in fourth-quarter profits. Yielding 4.21%, the stock trades at roughly one-third its 52-week Big Board high.

In uncertain political times, Cramer said he would stay clear of the other kind of defensive stocks, mainly General Dynamics (GD)and Lockheed Martin (LMT).

Big-time defense stock. One of the usual suspects.

From a recent Mad Money show:"This one's down a huge amount. I think if you want a defense company name, you want Lockheed Martin (LMT) or even better Northrop Grumman (NOC) which is a high-yielder. I also still like AeroVironment (AVAV)."

Among the companies on our list, General Dynamics (GD) says pension costs will have a minimal impact on earnings, since most of its profits come from government-related work and it can pass a majority of such costs on to the government. That isn't factored into Credit Suisse's 60-cent estimate of GD's '09 pension-related costs, Zion says.

Another favorite is aerospace giant General Dynamics , with a yield of 2.5% and earnings that could rise 20% this year, fueled by U.S. military spending and demand for corporate jets. "Regardless of who wins the presidential election, we don't see major cuts in GD's programs," Helm says.

The Falls Church, Va.-based defense contractor said its board approved the
repurchase of up to 10 million common shares. The company has about
397.3 million shares outstanding.

The company reported strong second quarter earnings as the Iraq war
fueled robust sales of blast-proof trucks. Net income increased 25% to
$641 million, or $1.60 a share, from $513 million, or $1.26 a share, in
the same period last year. Sales jumped to $7.3 billion, an 11% gain,
as demand for Gulfstream jets increased.

“General Dynamics’ performance continued to be strong in the second
quarter of 2008,” said Nicholas D. Chabraja, chairman and CEO. “Sales,
earnings and operating margins increased in all four business segments
compared to the year-ago period, cash generation was exceptionally
strong and the robust backlog suggests continued healthy demand for the
products and services of each business area.”

Mr. Chabraja continued, “Growth in the Aerospace backlog is a
reflection of continued demand for the entire existing product line and
extremely strong demand for the new Gulfstream G650. We are very
pleased to see this interest in the new plane and view that as an
indicator of Gulfstream’s ability to anticipate and exceed its
customers’ product expectations.”

Cowen and Company was bullish on GD’s recent acquisition of Jet
Aviation. Analyst Cal Von Rumohr said, “Proposed acquisition of Jet
Aviation for $2.25 billion (10x 2009E EBITDA) brings GD a complementary
portfolio of services, global presence, & .trusted partner. image that
should help GD sell its upper end business jets.” He has an outperform
rating on the stock.

groth only over 16 month period