His picks: WellCare Health Plans (WCG), a Medicaid and Medicare service-provider; Boeing (BA); Northrop Grumman (NOC); and Spirit AerosSystems (SPR). "They've produced and earned, but are priced for a diminishing future based on presidential rhetoric," Bruce Berkowitz of Fairholme (FAIRX) says.

A 7.5% increase, a quarterly dividend of $0.43 per share on their common stock, an increase from $0.40 per share.

Wednesday, Northrop (NOC), which has a roster of promising products and robust cash flow, lifted its quarterly common dividend 7.5%, to 43 cents a share from 40 cents, marking the sixth consecutive year of higher distributions. Dividends have more than doubled in that stretch, and have been paid without interruption since 1951. In March, defense-industry brethren General Dynamics (GD) and Raytheon (RTN) raised their quarterlies, too. Northrop's new dividend is payable June 13 to holders of record June 1, and the stock goes ex-dividend May 28. Los Angeles-based Northrop is the world's No. 2 military contractor (behind Lockheed Martin [LMT], with Boeing [BA] a close third) and the No. 1 builder of conventional warships and nuclear-powered aircraft carriers. Traded on the Big Board, the shares change hands just under 50 and, with the new payout, yield 3.57%. Their 52-week range is 76.32 to 33.81. The company bought back $1.6 billion of stock in 2008.

From a recent Mad Money show:"The problem is that this is a defense company. Let's buy it under $30."

Mostly, companies declined to comment, without knowing the specifics of the analysis. P&G said it "held itself to the highest standards." Some, like Northrop Grumman and ConocoPhillips, noted they had already announced impairments.

Northrop Grumman (NOC), another defense contractor, could face a threefold increase in after-tax pension costs of $1.74 a share next year, Credit Suisse estimates. And that's despite having cut its equity exposure in half, to 25% by late September. Northrop executives have said they will consider using cash to pre-fund pension obligations, as well as acquisitions, dividend increases and stock buybacks.

From a recent Mad Money show:"The defense contractors are a sale under Obama. Its a well-run company. I hate to not recommended it, but I can't."

From a recent Mad Money show:"The defense contractors are a sale under Obama. Its a well-run company. I hate to not recommended it, but I can't."

Lockheed's shares (LMT) have fallen 25% this year and trade at 9.8 times estimated 2009 earnings. Northrop Grumman stock (NOC), down 44% year to date, trades at 8.2 times 2009 estimates.

From a recent Mad Money show: "You can't own the defense stocks right now. I'd look at Lockheed Martin with its good dividend."

They lack the attention to detail for long term projects

Trying to hedge my BA, but not working.