Just released: our top 3 cash-focused stocks to buy before December [PREMIUM PICKS]

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Our monthly Ice Best Buys Now is designed to highlight three of our team’s favorite, most timely Buys from our growing list of cash-focused Ice recommendations, to help Fools build their portfolios.

• The geopolitical conflicts in Ukraine and the Middle East have prompted NATO members to meet their commitments to invest 2% of their GDP in defense, and BAE Systems will benefit from a long-term increase in defense spending in Europe.
• Defense manufacturers mainly serve government customers, ensuring strong sales and stable income. Contractual provisions covering cost increases give these companies protection against inflation. This resilience to inflation has played a major role in the industry’s exceptional performance relative to the stock market as a whole over time.
• Currently, Britain spends 2.25% of its GDP on defence, which is expected to rise to 2.5% by 2025, following Parliament’s approval of an additional £5 billion for the military.
• In H1 2024, combined revenue from the UK and Europe accounted for 40% of BAE’s total revenue, up from 33% in 2022. every year.
• Under the AUKUS partnership, the UK will design and build eight next-generation, nuclear-powered (but not nuclear-armed) submarines with Australia. BAE Systems, with its expertise in the design and construction of submarines, can play a major role in providing technical support or assistance.