After years of increased defense spending in the U.S., the White House, Pentagon and Congress are now looking to cut military budgets. LIGNET believes investors can nonetheless realize healthy returns in the defense sector by focusing on high-dividend stocks that can still appreciate in value. Diversified companies such as Boeing (NYSE: BA) have robust defense acquisition programs and strong prospects for large arms sales to Gulf states due to tensions with Iran and thus are likely to be hurt less than others during this time of budgetary retrenchment.