Defense companies get most of their revenue from the US government, making them pretty stable investments. If you're looking at the sector, pay attention to the Pentagon's budget requests rather than big press releases, since large contracts are usually spread over years and need congressional approval. The industry's current focus is restocking depleted US weapon inventories and shifting toward high-tech. Profit growth is coming more from electronics and sensors rather than building massive ships and planes. These stocks are generally better for steady dividend income than fast growth.