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.

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.

Insurer Allstate (ALL) produces almost $8 a share in free cash, providing support for its 3.7% yield. Military contractor General Dynamics (GD) churns out $5 a share, and yields 1.9%.

PE of 14, a PEG of 1.32, and pays a yield of 1.7%.

PE of 15, a PEG of 1.46 , and pays a yield of 1.7%.

I know the defense industry and believe that any political administration will maintain our investment in defense. GD is a premier company of big ticket weapons systems with a proven track record for earnings and growth.

P/E of 16, a PEG of 1.48. The company pays a yield of 1.7%.

Najarian said that Raytheon (RTN), General Dynamics (GD) and Honeywell (HON) are exhibiting bullish options activity.

My employer

groth only over 16 month period