5 Dividend-Paying Sin Stocks to Buy May Survive a Massive Market Sell-Off

Lockheed Martin

This is one of the top aerospace and defense stocks to buy, and it has backed up nicely for investors looking to buy shares. Lockheed Martin Corp. (NYSE: LMT) researches, designs, develops, manufactures, integrates, operates and sustains advanced technology systems, products and services. It also provides a wide range of defense electronics products and IT services.

Being the Pentagon’s prime contractor, Lockheed Martin offers a diverse portfolio of global aerospace, defense, security and advanced technologies. Its leveraged presence in the Army, Air Force, Navy and IT programs guarantees a steady inflow of follow-on orders, not only from the U.S. government but also from many foreign allies of the nation.

Over the past several years, Lockheed Martin’s backlog has substantially outgrown the rest of the industry, supporting the growth outlook for the foreseeable future. The company has exposure to Department of Defense priority buckets and consistently executes well. Even if the end-market growth rate slows, analysts expect continued strong fundamentals, with compounding earnings and cash flows.

Investors receive a 3.13% dividend. BofA Securities has set its price objective at $500. The consensus target is $422.72, and Lockheed Martin stock closed at $358.12 on Tuesday.

VICI Properties

This is the top pick across Wall Street in the net lease group, and it is an ideal stock for investors who are more conservative and looking for gaming exposure. VICI Properties Inc. (NYSE: VICI) is a triple net lease real estate investment trust (REIT) that was spun out of Caesars Entertainment post-bankruptcy.

The company has 23 mixed-use gaming, lodging and entertainment properties in its portfolio, and a subsidiary that owns four championship golf courses. VICI also owns roughly 34 acres of undeveloped land in Las Vegas, which it leases to Caesars.

Much of the focus this year was on VICI’s recent deal to acquire the real estate of the Venetian Resort in Las Vegas, with Apollo as a new tenant. Looking ahead, many on Wall Street are very positive on VICI’s embedded growth pipeline with Caesars Entertainment, including a put/call on the Centaur properties in Indiana (starting in January 2022) and a right of first refusal on a strip asset sale for Caesars, which could occur soon after a full earnings before interest, taxes, depreciation, amortization and restructuring or rent costs recovery.

Investors receive a 4.85% distribution. The BofA Securities price target is $36. The consensus target for VICI Properties stock is $34.89. Shares closed trading on Tuesday at $29.69 apiece.

No one should invest in something they personally oppose. However, for investors not bothered by these industries, they may have solid portfolio potential and typically, even if the economy gets rocky, they are able to hold their own. With the current market at stratospheric levels, it may make sense to shift some dollars to these solid companies.