10 Best Consistent Dividend Stocks To Invest In Right Now

3. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 58

Lockheed Martin Corporation (NYSE:LMT) is an American aerospace and defense company that specializes in advanced technology systems, services, and products. The company is a strong dividend payer with 22 consecutive years of dividend growth. It currently pays a quarterly dividend of $3.30 per share and has a dividend yield of 2.55%, as of December 4.

Lockheed Martin Corporation (NYSE:LMT) is anticipated to sustain its dividend in the years ahead, backed by its strong cash flow generation. In the latest quarter, the company reported $2.4 billion in operating cash flow and $2.1 billion in free cash flow. Additionally, it returned $1.6 billion to shareholders through dividends and share buybacks during the same period.

Lockheed Martin Corporation (NYSE:LMT) has been attracting attention from investors, as defense contractors are generally seen as stable investment opportunities. This is mainly due to the US government, a reliable customer, and the consistency of defense budgets, which tend to remain stable even during economic downturns. Furthermore, ongoing global geopolitical tensions are boosting defense spending, as funds are allocated to replace equipment used in conflicts or address rising security needs. Notably, Lockheed Martin’s missiles and fire control division, expected to be the fastest-growing segment in the coming years, also offers the highest profit margins. The stock is delivering strong returns this year, surging by nearly 13.5%.

Ariel Investments made the following comment about Lockheed Martin Corporation (NYSE:LMT) in its Q3 2024 investor letter:

“Additionally, leading global defense contractor Lockheed Martin Corporation (NYSE:LMT) increased following a top- and bottom-line earnings beat and subsequent raise in full year guidance. The company also announced three significant F-35 contracts underscoring the growing tailwinds for sustainment efforts and continued engineering advancements as the fleet continues to expand. LMT continues to be well positioned in the defense sector.”

As per Insider Monkey’s database of Q3 2024, 58 hedge funds owned stakes in Lockheed Martin Corporation (NYSE:LMT), up from 56 in the previous quarter. These stakes have a consolidated value of roughly $2.4 billion. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.