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I'm getting ready to add some money to my portfolio, and I've got it narrowed down to two picks, both of which I feel are very solid. Given the current state of the market, I feel the need to add a solid defensive stock, with good fundamentals. Thus, after a good amount of research, I will be choosing between Waste Management Inc and Raytheon. I'm going to give my logic for both selections and then hopefully you all can weigh in.

Raytheon

It's hard to argue with a big, diverse cash cow like Raytheon. They were just awarded a massive new defense contract recently, and given the state of world affairs, it's hard to see the government not needing more Raytheon products. However, the new defense contract really drove the price of RTN up and it's quite near its 52-week high. This latest market crash has dropped RTN back down to a more reasonable price. The company also has a solid cash flow and very little debt. With a nice dividend in tow, this is a very appealing stock indeed.

Waste Management

The world is not going to stop making garbage. The generation of waste is just a fact of life and somebody has to clean up. WMI however, is not just cleaning it up, they are recycling it and finding innovate ways to make our world a little greener. They own all the trucks and the landfills and can easily raise trash pick-up or dropoff prices to compensate for the recession. People certainly aren't going to stop having their trash picked up regardless of how bad the economy is. WMI's Total Debt / Equity is not nearly as pretty as Raytheon's however, and the growth of their stock is much slower. Additionally, the dividend is smaller than what RTN pays. WMI is also a lot cheaper than RTN though, so I could get a much larger stake.

Decisions, decisions!

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