Lockheed Martin Corporation (NYSE:LMT)’s shares have run up nicely over the last few months, but still yield over 4%. For more conservative investors looking for a way to play the uptick in cyber-attacks, this could be a well-diversified option.
Integration
Intel bought McAfee, a maker of computer protection software that competes with Symantec, for nearly $8 billion in 2010. The idea was to increase its exposure to the software business. That hasn’t been such a great deal for Intel Corporation (NASDAQ:INTC) just yet, since its chip business continues to face mobile headwinds. Although the company has been working on mobile chips to support the Android mobile operating system, it is a clear laggard and that fact has taken center stage.
That said, the company’s chips are still dominant players in the personal computer and server spaces. These two areas should provide plenty of support while the company works to enter the mobile space. However, the company continues to work on better chips for computers and servers.
Part of making chips better is including more and more into a single chip. For example, Intel Corporation (NASDAQ:INTC) has been integrating graphics capabilities into its chips. Imagine if it was also able to integrate cyber protection into its chips. Since networks are nothing more than a collection of connected computers that could be a huge win for the company.
This is not a public push right now, since mobile is the hot issue, but it could add some allure to investors willing to bet on a turnaround at this chip giant. Yielding around 4% recently with a solid history of annual dividend increases, investors are being paid to wait for an eventual turnaround.
The Back Way
Investors looking at the cyber threat posed by such countries as China have plenty of ways to get involved. Although the three companies noted above aren’t direct players, they all touch the space in interesting ways.
Intel Corporation (NASDAQ:INTC) is the most obscure, but the company also has a massive business, lots of turnaround potential, and an impressive dividend yield. Symantec Corporation (NASDAQ:SYMC), for its part, is a decent turnaround play that requires little more than improving its operations to work out. The increased concern about cyber issues is just icing on the cake. Lockheed Martin Corporation (NYSE:LMT), meanwhile, would benefit from both a virtual war and helping China’s neighbors bulk up to deal with the threat of a physical war.
Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends Intel and Sourcefire. The Motley Fool owns shares of Intel and Lockheed Martin. Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Unique Angles On The China Hacker Problem originally appeared on Fool.com is written by Reuben Brewer.
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