Back in the spring, President Biden unveiled his latest defense spending proposal.
It came in at a whopping $895 billion.
However, if the U.S. Senate has its way, it'll be even bigger than that.
You see, the White House budget proposal is just that — a proposal.
Congress has the purse strings in this country, and rather than play hardball on defense spending (as they do with so many other issues) our representatives typically grant more money than what the president asks for.
This time around, the Senate has come back with a FY2025 defense budget totaling $923 billion.
The extra spending would include a bevy of add-ons, including funding for a second Virginia-class attack submarine that even the Navy says it doesn't want.
Spearheading this spending spree is Mississippi Senator Roger Wicker, the top Republican on the Senate Armed Services Committee.
If Wicker had his way, the increase would have been even larger — $55 billion, as opposed to $28 billion — as he considers it "a generational investment to prevent another world war."
Elon Musk Predicts Electricity Shortages in Two Years
AI is about to unleash an energy crisis...
The CEO of AI startup Aible says, "The world is actually headed for a really bad energy crisis because of AI."
The University of Pennsylvania expects AI's hunger for electricity to "spiral out of control."
And Elon Musk predicts, "[There'll be] electricity shortages... in about two years."
That's why AI's hunger for power requires a massive energy ramp-up.
One that will unleash billions, even trillions of dollars.
And one little-known firm from Ohio is in the perfect position to capture a substantial amount of this windfall.
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"My amendment to increase the budget top line is a down payment, and it keeps advancing the discussion," said Wicker. "Negotiations need a starting point, and this is not the end. I will not give up on reaching a defense level that meets the moment."
Indeed, it's unlikely that Wicker will get the increase he wants, but he's done his part to pull the top line higher. And while bipartisanship is a dirty word these days, the defense budget routinely sails through Congress with little resistance.
Savvy investors know that — and act accordingly.
Indeed, there's no shortage of income-yielding defense stocks, including:
- Lockheed Martin (NYSE: LMT) — 2.75%
- Northrop Grumman (NYSE: NOC) — 1.94%
- General Dynamics (NYSE: GD) — 1.95%
- RTX Corp. (NYSE: RTX) — 2.42%
- L3Harris (NYSE: LHX) — 2.13%
- Huntington Ingalls (NYSE: HII) — 2.18%
In addition to the dividend yields, these stocks are also doling out some heavy capital gains in both the short and long term.
General Dynamics, for example, is up 34% in the past year and 70% in the past five years. That's not uncommon for the industry, which is broadly benefiting from soaring defense spending worldwide.
Sam Altman Drops AI Bombshell
Sam Altman is raising the alarm about AI's future... highlighting an urgent energy crisis.
He says, "Powerful new AI models require more energy consumption than previously imagined" and that "there's no way to achieve [the AI future we envision] without a breakthrough".
To combat this, Altman is investing $375 Million into a brand-new technology that's CRITICAL to meeting the escalating power needs of our AI-driven future.
I call it the AI "Master Key"...
And there's one little-known company the US Government is working with to develop this technology essential for America's future energy security.
Find out more about this AI "Master Key" firm here.
However, if it's the income you're most interested in, there are a few defense-related investments that yield twice as much as these defense stocks.
A good example of that is a REIT I recently recommended to Wealth Advisory subscribers.
It currently yields 4.87% and it's an even safer bet than the aforementioned defense contractors.
In fact, it's their landlord, leasing out office space, labs, testing ranges, training facilities, etc.
About a third of all its business comes from the General Services Administration (GSA) — the government agency responsible for managing and supporting our sprawling bureaucracy. That includes facilities like courthouses and military bases.
So as the defense-industrial complex expands, so too does this company's portfolio of income-generating properties. And since it's a real estate investment trust (REIT), it's required by law to distribute 90% of its income directly to its investors.
Basically, it's the perfect way to game the defense-industrial complex and reclaim your tax dollars.
In fact, it's such a slam dunk that my co-editor Jason Williams and I put together a whole presentation on it.
Check that out here if you haven't seen it yet.
Fight on,
Jason Simpkins
Biden Campaign Raises $30 Million at
Star-Studded Fundraiser
(Here's Why He'll Win in November)
The Guardian reports that Hollywood stars like George Clooney, Julia Roberts, and Barbra Streisand just helped raise a record $30 million for President Joe Biden's reelection campaign.
While the fundraising tactics used by the Democrats are impressive...
They are insignificant compared to the sinister plan Biden has in store for America...
And most importantly, what this will do to your hard-earned wealth.
Because ever since taking office, Biden has been methodically setting the stage for his master plan...
To gain complete control over YOUR money!
The recent rollout of FedNow is a critical step toward making Biden's agenda a reality.
More than 110 of the nation's largest banks, including JPMorgan Chase, Wells Fargo, and BNY Mellon, are already participating in FedNow.
A key announcement expected on August 31 at the Federal Reserve's next meeting could put this plan in the spotlight...
I urge you to take these four easy steps right away to protect your money and freedom while you still can.
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