Wall Street's Top Analysts Weigh In on 3 High-Yielding Defensive Stocks

As the market continues to grapple with volatility, investors are seeking refuge in defensive stocks that offer high dividend yields. Wall Street's most accurate analysts have identified three stocks that stand out in this regard, providing a mix of safety and income. Let's dive into these recommendations and explore the data supporting their bullish outlooks.



1. Science Applications International Corporation (NASDAQ: SAIC)
Citigroup equity research analyst and managing director Jason Gursky reiterated a 'Buy' rating for SAIC, raising his price target from $160 to $176. Should the stock reach that mark, it will have posted a 23.3% gain relative to its current price of $142.74. SAIC shares are up 14.57% YTD, and the company's next earnings call is due December 2.



SAIC has a history of increasing its dividend, with a 10% increase in 2024 to $0.75 per share. The company's strong financial performance and commitment to dividend growth make it an attractive choice for income-focused investors.

2. L3Harris Technologies (NYSE: LHX)
Citigroup aerospace and defense researcher Jonathan Raviv raised his price target from $268 to $291, citing rising defense budgets in Europe and additional spending bills in the U.S. LHX is trading for $242.35 at press time, with a YTD return of 15.53%. The company's next earnings call is on October 24.



L3Harris has a history of increasing its dividend, with a 12% increase in 2024 to $1.20 per share. The company's strong fundamentals and exposure to growing defense spending make it an appealing choice for investors seeking a combination of safety and income.

3. General Dynamics (NYSE: GD)
Citigroup maintained a 'Buy' rating on General Dynamics, increasing its price target from $331 to $354. At the time of writing, GD shares are trading at $296.09, bringing YTD returns up to 14.50%. The company's next earnings report is on October 23.



General Dynamics has a history of increasing its dividend, with a 10% increase in 2024 to $1.12 per share. The company's broad exposure to the defense industry and strong financial profile make it an attractive choice for investors seeking a mix of safety and income.

These three defensive stocks offer high dividend yields and strong fundamentals, making them appealing choices for investors seeking a combination of safety and income. As the market continues to grapple with volatility, these stocks provide a compelling alternative to more cyclical investments. However, investors should always conduct their own research and consider their individual risk tolerance before making any investment decisions.