I have my 401K with them

Hold - Price 40.60 on April 7
by Standard & Poor's

Lowering to Hold from Buy. [Monday's] speech by U.S. Secretary of Defense Robert Gates supported our belief that the U.S. is entering a period of no-growth to declines in real defense spending. In particular, we see missile defense, an area of strength for RTN, as vulnerable, with a proposed cut of $1.4 billion to the U.S. [fiscal-year] '10 budget (Sept.). We're reducing our 12-month target price by $13, to 44, on our revised relative valuation analysis. Although we note RTN's strength in defense electronics and intelligence systems, an area where we see budgetary strength, we no longer expect the shares to outperform. Market cap: $16.4 billion.

Defense exposure

Raytheon, which had $23.2 billion in sales last year, boosted its quarterly common dividend by 10.7% Wednesday, to 31 cents a share, from 28 cents. Disbursement will take place May 1 for investors on the Waltham, Mass., company's books April 7. The stock goes ex-dividend April 3. Taking into account the enriched payout, Raytheon shares yield 3.14%. "The increase in our dividend reflects our company's strong financial position, our continued confidence in our future and our ongoing commitment to our shareholders," declared chief executive officer William H. Swanson. Raytheon's payouts resumed their climb in 2005, after being stuck at 20 cents a share for a decade. Dividends have been paid without interruption since 1964. Raytheon repurchased 30.7 million of its shares in 2008 for $1.7 billion.

Increased their annual dividend payout rate by 11 percent from $1.12 to $1.24 per share. Payment of a quarterly cash dividend of $0.31 per share of common stock to be paid on May 1, 2009 to shareholders of record as of the close of business on April 7, 2009.

A strong offense is the best defense.

From a recent Mad Money show:"Raytheon is a problem for me. I don't mind buying it down here, but I'm just not that excited by it."

Held for 45 years

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

For reasons like that, defense stocks may well be oversold. Raytheon (RTN) boosted estimates for 2009 earnings in recent weeks, helping limit its stock's decline this year to 19%, versus 36.6% for the broad market. It's now trading at a reasonable 10.6 times estimated earnings for 2009.

What happened?

lack of growth

Diversification. Considering LMT after more research.

Diversification; Exposure to anticipated growth in Aerospace/Military.