For an investor who is aware of the risks and rewards, defence stocks can be valuable addition to a portfolio. Let’s look at some of the top defence shares in the UK, what the underlying businesses do, and what to think about in evaluating them.
What are defence stocks?
A defence stock is simply a share of a company that provides some form of security product or service to military or law enforcement.
Often, the first thing that comes to mind when thinking about defence companies is design and manufacturing. Whether it’s weapons, vehicles or materials, cutting-edge products are often at the forefront of thinking about military businesses from an investment perspective.
But defence companies in the UK are much broader than just manufacturing. Weapons, vehicles and materials are certainly part of the story, but UK defence companies also provide other important services.
Some provide intelligence services that help make operators…
