President Donald Trump is causing some commotion for investors in U.S. defense contractors this week
President Donald Trump caused some commotion for investors in U.S. defense contractors this week. First, Trump criticized the companies for taking too long to produce military equipment and also failing to maintain it while at the same time paying out billions in dividends and stock buybacks to investors. But then the president proposed a $1.5 trillion defense budget for 2027, a big jump from the $901 billion provisioned for 2026.
Shares of Lockheed Martin, General Dynamics, Northrop Grumman and Raytheon parent RTX fell after the criticism but then roared back at the prospect of more lucrative government contracts down the road.
A look at Trump’s comments and how they relate to U.S. defense contractors.
Trump on Truth Social: “While we make the best Military Equipment in the World (No other Country is even close!), Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and