4. Lockheed Martin Corporation (NYSE:LMT)
Consecutive Years of Dividend Growth: 22 Years
Lockheed Martin Corporation (NYSE:LMT) is a Maryland-based aerospace and defense company that specializes in advanced technology systems, services, and products. The company has been grabbing investors’ attention as defense contractors are generally regarded as secure investment options. This is largely because the US government, known for its dependable spending, serves as a primary customer, and defense budgets typically remain steady regardless of economic fluctuations. Additionally, the current global landscape, marked by numerous geopolitical tensions, is driving an increase in defense expenditures. These funds are being directed toward replacing equipment utilized in conflicts or meeting heightened security demands. Notably, Lockheed Martin’s missiles and fire control division, projected to be the company’s fastest-growing area in the coming years, also boasts the highest profit margins. Since the start of 2024, the stock has surged by over 14%.
In the third quarter of 2024, Lockheed Martin Corporation (NYSE:LMT) reported revenue of $17.1 billion, which grew slightly from $16.9 billion in the same period last year. During the quarter, the company made significant progress in its strategic, operational, and financial objectives. This was evident from a record backlog exceeding $165 billion, the delivery of 48 F-35 aircraft, and increased missile program production. Encouraged by robust year-to-date performance and a positive near-term outlook, it has revised its 2024 full-year guidance upwards, raising expectations for sales, segment operating profit, earnings per share, and free cash flow.
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.”
Lockheed Martin Corporation (NYSE:LMT) is expected to maintain its dividend in the coming years, supported by its robust cash flow generation. In the most recent quarter, the company generated $2.4 billion in operating cash flow and its free cash flow came in at $2.1 billion. Moreover, it returned $1.6 billion to shareholders through dividends and share repurchases during the quarter.
On October 3, Lockheed Martin Corporation (NYSE:LMT) declared a 4.8% hike in its quarterly dividend to $3.30 per share. This was the company’s 22nd consecutive year of dividend growth. The stock’s dividend yield on December 2 came in at 2.53%.
Of the 900 hedge funds tracked by Insider Monkey at the end of Q3 2024, 58 funds owned stakes in Lockheed Martin Corporation (NYSE:LMT), up from 56 in the previous quarter. The collective value of these stakes is nearly $2.4 billion.
