Northrop Grumman

$NOC (-0,09 %) Northrop Grummann

$LMT (+0,94 %) Lockheed Martin

*Both at the all time high today*

With sales of over 39 billion dollars, Northrop Grummann $NOC (-0,09 %) is a major global aerospace and defense technology company responsible for several critical components of America's defense and NASA's space program. The company develops complex platforms that last for decades, regardless of current events. The S&P 500-listed company is the primary supplier for the modernization of the United States' nuclear weapons systems.

The old B-2 Spirit stealth bomber model is to be replaced by the new B-21 Raider variant, and a new generation of intercontinental missiles is being developed as part of the Sentinel program. Both programs extend over several decades and promise stable revenues. Test flights with the B-21 are currently taking place and the handover is planned for the 2020s. The first operational Sentinel system should be fully operational by around 2029.

After several years of heavy investment in product development and capacity expansion, the end is gradually approaching. In the first half of the year, sales grew by 8% year-on-year to USD 20.4 billion, with a stable EBIT margin of 10.8%. The largest increases were recorded in the Aeronautics and Defense Systems segments. With an order backlog of USD 83 billion, CEO Kathy Warden expects sales of around USD 41 billion and earnings per share of between USD 24.90 and 25.30 for the 2024 financial year. If this is achieved, the 2024 P/E ratio of the share (USD 513.73; US6668071029) is currently

20The most recent example is the USD 1.3 billion contract that the Americans were able to land together with their joint venture partner Raytheon on August 30. This involves the production of around 50,000 Javelin missiles and more than 12,000 reusable command and control units.

The Javelin program is part of the "Missiles and Fire Control" segment, which generates around 17% of Group sales and recorded the highest growth rate in H1 2024 (+18.5% year-on-year). Overall, revenue increased by 11% to USD 35.3 billion in the period under review.

In terms of size, the "Aeronautics" segment is the most significant with a 40% share of sales. This includes the F-35 fighter jet, which is also very popular in Germany. According to media reports, the German government is currently discussing the procurement of a further tranche of eight F-35 jets for the German armed forces.

Lockheed $LMT (+0,94 %) is continuously working on its flagship product; the first model with the latest technology was recently delivered. CEO Jim Taiclet expects a total of 75 - 110 F-35 jets to be delivered in FY 2024. The fruits of many years of development work should now be reaped in the coming years, which should gradually have a positive impact on profitability.

The forecast for the financial year envisages an EBIT margin of 10.4% (2023: 12.6%), with sales of 70.5 to 71.5 billion (2023: 67.6 billion dollars). The order backlog as at June 30 amounted to almost USD 160 bn, more than double the expected revenue.

Following the strong share price performance, the valuation has risen to 22 times the expected earnings per share for 2024.

I was introduced here several times about 12 months ago and decided to buy.

My thanks go to:

@7Trader
@Asgard19
@Der_Dividenden_Monteur

@Simpson and @Michael-official

who drew my attention to it.

Depot review September 2024 - The first green September in my depot since 2019 📈

September is generally regarded as the worst month on the stock market, with a negative monthly performance more than 50% of the time. This is also consistent with my experience since 2013. In 11 years, it has been negative 6 times and positive 5 times. From 2020 to 2023, the last 4 years were all negative. However, September 2024 is now the first positive September since 2019, which means it is exactly 50/50 for me - 6 positive and 6 negative Septembers since 2013.

The Fed's interest rate turnaround and the stimulus in China have certainly contributed to the positive trend

Monthly view:

In total, September was +1,2%. This corresponds to price gains of ~3.600€.

The MSCI World (benchmark) was +1.0% and the S&P500 +1.3%

Winners & losers:

A look at the winners and losers is particularly exciting this month.

On the winning side at the very top are my China ETF with € +1,300 and is thus back in the green for the first time in a long time. The following winners are also a colorful mix with Meta, Bitcoin, Home Depot and Sea. Really a very broad mix with no clear tendency towards regions, sectors or the like

On the loser side in my portfolio in September were mainly pharmaceutical stocks. Novo Nordisk, Amgen and Johnson & Johnson. Even worse, with price losses of ~€700 each, were only Palo Alto Networks and ASML.

The performance-neutral movements in September were just under €4,500. The premium refund from my private health insurance also played a large part in this. In September, I received over €2,000 back for the year 2023, which was of course invested directly to compensate for any higher pension contributions.

Current year:

My performance in the current year is +20,4% and thus above my benchmark, the MSCI World with 17.2%.

In total, my portfolio currently stands at ~321.000€. This corresponds to an absolute growth of ~€69,000 in the current year 2023. ~49.000€ of this comes from price increases, ~2.800€ from dividends / interest and ~17.000€ from additional investments.

Dividend:

• Dividends in September were 23% above the previous year at ~€360
• Amgen is in the lead with a (gross) dividend of €50 every 3 months. But Johnson & Johnson with €45 is also a delight
• In the current year, the dividends after 9 months are +25% over the first 9 months of 2023 at ~2.210€

Buys & sells:

• I bought in September for approx. 3,500€. 2,100 of this came from the premium refund from my private health insurance and went into the WisdomTree Global Quality Dividend Growth
• As always, my savings plans were executed:
• Blue ChipsLockheed Martin $LMT (+0,94 %) Republic Services $RSG (-1,09 %) Thermo Fisher $TMO (+0,81 %) ASML $ASML (-1,59 %) MasterCard $MA (-0,34 %) Deere $DE (+0,19 %) Northrop Grumman $NOC (-0,09 %) Itochu $8001 (-0,17 %) Salesforce $CRM (+0,69 %) Hermes $RMS (+0,75 %) Constellation Software $CSU (+0 %)
• 
  Growth: -
• ETFsMSCI World $XDWD (+0,24 %) Nikkei 225 $XDJP (-0,32 %) and the WisdomTree Global Quality Dividend Growth $GGRP (-0,09 %)
• 
  Crypto: Bitcoin $BTC (-1,55 %) and Ethereum $ETH (-0,55 %)
• 
  Sales there were none in September

Target 2024:

My goal for this year is to reach €300,000 in my portfolio. Due to the extremely positive market development in the current year, my portfolio currently stands at ~€321,000.

At the beginning of September, my portfolio was still quite a bit lower at €304,000 due to the weak start to the month. At this point, it was therefore quite a way off the previous high of €320,000 in June.

I have now reached a new high of €321,000 and am optimistic that I can still beat my year-end target of €300,000.

#dividends

#dividende

#rückblick

#depotupdate

#aktie

#stocks

#etfs

#crypto

#personalstrategy

Depot update:

I have again exchanged a few of my 45 long-term individual positions for stocks that I simply feel more comfortable with for the next few years.

Once again, a brief summary of my strategy:

1) I want to bring the two large ETF positions to 25% weighting each, as the core of the portfolio.

2) I would like to hold and save the 45 individual positions for the long term, as I consider them to be good buy & hold investments that have the potential to beat the market in the long term.

3) I would like to hold cryptos at a weighting of around 5%. If the weighting exceeds 10%, I halve it again and invest the money freed up in equities.

Considerations/plans:

- Additional purchases are planned for positions that are not yet as large for me, for example. $NOC (-0,09 %) I would like each position to be at least €600

• Also bid $V (-0,14 %)
  $CNR (+0,4 %) and $WALMEX* (+0 %) are currently offering me good opportunities for additional purchases
• I am currently considering "only" weighting the two ETFs with 20% each and also adding the $CSNDX (-0,01 %) with a 10% weighting... But I don't think I will do that, the heavyweights from the Nasdaq 100 are already well weighted in my portfolio anyway

What do you think about the portfolio, what would you change?

PS: I'm not actively looking to collect a lot of dividends and I'm aware of the high number of individual stocks, so I can live with that.

Armaments shares from 🇺🇸 in comparison, the last 20 years, you can see only after 10 years have the 🚀 ignited.

I only have a large position in Lockheed and a small one in RTX.

But I invest in all 5 via a savings plan 😊👍

Do you have one or two armor stocks in your portfolio?

$LMT (+0,94 %)
$RTX (-0,37 %)
$GD (+1,35 %)
$NOC (-0,09 %)
$LHX (+0,74 %)

Depot review March 2024 - And on, and on, and on,...

March picks up where February left off. And before that, January, December, November,...

In total, March was +2,9%! This was less than in January and February and was mainly driven by the first half of March. In total, this corresponded to price gains of ~8.000€.

Winners & losers:

On the winners' side is getting really boring. In 1st place, of course: NVIDIA
$NVDA (+2,01 %) with share price gains of ~€2,100. 2nd place goes to Alphabet
$GOOG (+1,03 %) with €1,000. But also Bitcoin $BTC (-1,55 %) also showed a strong performance with price gains of €800. The top 5 is then rounded off by two securities that I would rarely expect to see in the top 5: The MSCI World ETF $XDWD (+0,24 %) and the German Bank $DBK (-1,71 %)

On the losers' side there is a lot of tech. With Palo Alto Networks $PANW (-2,12 %) and MercadoLibre $MELI (+2,5 %)

two high growth tech stocks that were already at the bottom in February.
In addition Apple $AAPL (+1,34 %)
Nike $NKE (-6,85 %)

and Starbucks $SBUX (-1,55 %) were weaker.

The performance-neutral movements in March amounted to € 1,300. As in January and February, a larger proportion is currently being spent on private expenses. Nevertheless, I was able to invest significantly more net in March than in January and February. I bought just over €2,000 in March. However, the net figure for the pure securities portfolio is a minus, as I sold my Encavis
$ECV (-0,06 %) shares after the takeover offer from KKR. As a result, ~€2,600 flowed out of my securities account, which is now in the clearing account for 4%.

My performance for the current year is +14,7% and thus well above my benchmark, the MSCI World with 11.2%.

In total, my portfolio currently stands at ~291.000€. This corresponds to an absolute growth of ~€39,000 in the current year 2023. ~36.000€ of this comes from price gains, ~720€ from dividends / interest and ~2.000€ from additional investments.

Dividend:

• Dividends in March were +30% above the previous year at ~€350
• In the current year, the dividends after 3 months are also +30% over the first three months of 2023 at ~630€.
• In March, there was also a dividend for the first time from Meta $META (-2,23 %)
  

Buys & Sells:

• I bought in March for approx. 2.000€
• Of which 500€ each in Hermes $RMS (+0,75 %) and Constellation Software $CSU (+0 %) as a first purchase
• In addition, the first few euros saveback from the Trade Republic card were also invested
• As always, my savings plans were executed:
• Blue ChipsNorthrop Grumman $NOC (-0,09 %) MasterCard $MA (-0,34 %) Salesforce $CRM (+0,69 %) Deere $DE (+0,19 %) Lockheed Martin $LMT (+0,94 %) ASML $ASML (-1,59 %) Thermo Fisher $TMO (+0,81 %) Itochu $8001 (-0,17 %) Republic Services $RSG (-1,09 %) Hermes $RMS (+0,75 %) Constellation Software $CSU (+0 %)
  
• Growth: -
• ETFsMSCI World $XDWD Nikkei 225 $XDJP and the WisdomTree Global Quality Dividend Growth $GGRP
• CryptoBitcoin $BTC and Ethereum $ETH
• Sales there was the (involuntary) sale of Encavis in March $ECV (-0,06 %)
  

Even though I was only able to add €2,000 net to my portfolio in the first quarter, the snowball had a very clear effect. Nevertheless, I will of course be investing more again in the medium term.

Target 2024:

My goal for this year is to reach 300.000€ in the portfolio. Now that my portfolio is already at €291,000, I have almost reached my target as of March.

However, I am still of the opinion that the markets will soon enter a sideways trend. In my opinion, this was already slightly indicated in the second half of March.

#dividends

#dividende

#rückblick

#depotupdate

#aktie

#stocks

#etfs

#crypto

#personalstrategy

$NOC (-0,09 %)

Northrop Grumman today About us

Northrop Grumman is a leading global aerospace and defense company.

and defense technology company. Our pioneering

Solutions equip our customers with the capabilities

They must connect and protect the world, and

expand the frontiers of human exploration

the universe. Driven by a common goal to solve

The most difficult problems our customers, our employees

every day.

Figures:

84.2 billion US dollar backlog 2023

39.3 billion US dollars sales 2023

$2.1B 2023 free cash flow(1)

2.6 billion US dollars dividends 2023 and share buybacks

What we do

We build some of the most beautiful in the world

advanced aircraft. From the innovative

stealth bomber B-2 Spirit to the

groundbreaking X-47B, in addition to

powerful airborne sensors and systems.

Northrop Grumman for decades

protected the U.S. Armed Forces and our allies by

designing, developing and delivering

weapons of increasing complexity and

capabilities for expanded missions and

domains.

Sources:

https://investor.northropgrumman.com/

www.onvista.de

Thanks to:

@Asgard19

@ausgeklammert

Opportunity seized :)

Northrop Grumman is one of the country's largest defense contractors and the prime contractor for two-thirds of the planned renewal of the U.S. nuclear triad, which is considered a top government priority.

$NOC (-0,09 %)

Jan 25 (Reuters) - Northrop Grumman NOC.N said on Thursday it posted a fourth-quarter loss after turning a profit a year earlier as it booked $1.17 billion in costs related to the U.S. Air Force's next-generation B-21 stealth bomber .

Shares of the Falls Church, Virginia-based company, which lost around 15% of its value in 2023, were down 6.2% in New York.

The B-21 Raider began flight tests in the fourth quarter, after which the US Air Force awarded Northrop a low-rate initial production (LRIP) contract for the bomber on a fixed-price basis.

"We believe it is likely that each of the first five LRIP lots will be conducted at a loss," Northrop said. The number of aircraft in those lots is unknown.

However, most of the production of the B-21 program, which will eventually produce more than 100 bombers, is covered by a cost-plus contract, meaning the company will reimburse the company for any additional costs it incurs due to inflation.

The B-21 Raider, which replaces the aging B-2, is a key weapon in the Pentagon's strategy to combat China.

According to LSEG data, Northrop reported adjusted free cash flow of $1.63 billion for the fourth quarter, above Wall Street analysts' estimates of $1.58 billion.

"We generated free cash flow at the high end of our guidance range, significantly exceeded our revenue guidance and beat EPS consensus, excluding the B-21 charge that we identified as a possibility this time last year," Chief Executive Kathy Warden said in a statement .

While the B-21 manufacturer Aeronautics experienced a 44% decline in operating margin, the continued expansion of development programs, primarily the Ground Based Strategic Deterrent (GBSD), increased margin in the Space Systems business by 12%.

The Sentinel program managed by Northrop Grumman, which is intended to replace Minuteman nuclear missiles, has used up its budget of USD 95.8 billion, the US Air Force announced last week.

Northrop reported a fourth-quarter loss of $3.54 per diluted share, compared with a profit of $5.96 per diluted share a year ago. Total revenue increased 6% to $10.6 billion.

Despite the B-21 headwinds, Northrop forecast 2024 revenue between $40.8 billion and $41.2 billion. Analyst estimates of USD 41.14 billion are slightly below the upper end of Northrop's forecast.