Raytheon Technologies: a safe stock for an unsafe world

Defence spending is set to soar – that should be good news for aerospace heavyweight Raytheon Technologies.

Raytheon Sentinel aircraft being worked on
Raytheon Technologies makes the Sentinel surveillance aircraft
(Image credit: © Raytheon Technologies)

Russia’s invasion of Ukraine has alerted democracies to the dangers of dictators with expansionist ambitions. The results will include strengthening of protective alliances and increased spending on defence. Germany, which has long undershot the Nato target of 2% GDP on defence, is now preparing to exceed that. Japan, which is conscious of China’s threats to invade democratic Taiwan and the South China Sea islands, has set a record defence budget for 2022. Australia is increasing its defence force by one-third.

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Dr Mike Tubbs

Highly qualified (BSc PhD CPhys FInstP MIoD) expert in R&D management, business improvement and investment analysis, Dr Mike Tubbs worked for decades on the 'inside' of corporate giants such as Xerox, Battelle and Lucas. Working in the research and development departments, he learnt what became the key to his investing; knowledge which gave him a unique perspective on the stock markets.

Dr Tubbs went on to create the R&D Scorecard which was presented annually to the Department of Trade & Industry and the European Commission. It was a guide for European businesses on how to improve prospects using correctly applied research and development. He has been a contributor to MoneyWeek for many years, with a particular focus on R&D-driven growth companies.