(BA, $146.35, 2.98% dividend yield). Boeing will be a major beneficiary of a turn in the defense cycle. As geopolitical events continue to be tense, U.S. defense spending should increase. Boeing has been focused on creating more fuel efficient aircraft and airlines are increasingly upgrading to these types of planes. In the past year, Boeing has increased their dividend 19.8%, versus 5.5% for the S&P 500, and has increased the dividend every year for the past 5 years.
(PFE, $31.48, 3.81% dividend yield). Pfizer's drug pipeline has recently shown some improvement, especially with Xeljanz which could be successful for rheumatoid arthritis and Ibrance for breast cancer. Pfizer has underperformed the market this year due to the uncertainty of drug pricing. Given the attractive dividend yield, this is a core long term holding for investors.
Cisco Systems Inc.
(CSCO, $30.18, 3.45% dividend yield). Cisco is in the process of reshaping their company. It will continue to grow the wireless and security segment but we will also see them move into software and cloud. Along with the attractive dividend yield, this company also sells at a 20% discount to the S&P 500. In the past year they increased the dividend by 20%