12 Best Consistent Dividend Stocks to Buy

5. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 65

Lockheed Martin Corporation (NYSE:LMT) is a Texas-based defense and aerospace manufacturing company that specializes in advanced technology systems, services, and products. For decades, the company has been the preferred defense partner for many US allies, with several nations relying on its weapon systems to enhance national security. This strong global demand contributes to analysts’ and investors’ confidence in the stock’s recovery, despite recent setbacks linked to significant losses in certain classified programs and delays in F-35 upgrade rollouts.

In fiscal 2024, Lockheed Martin Corporation (NYSE:LMT) demonstrated robust cash generation, reporting $7 billion in operating cash flow and $5.3 billion in free cash flow. Shareholder returns remained a priority, with $6.8 billion distributed through dividends and share repurchases. The company currently offers a quarterly dividend of $3.30 per share, yielding 3.01% as of March 22. With 22 consecutive years of dividend growth, it is one of the best dividend stocks on our list.

In the fourth quarter of 2024, Lockheed Martin Corporation (NYSE:LMT) posted revenue of $18.6 billion, reflecting a 1.3% decline from the previous year. Despite this, the company remained committed to national security initiatives, investing over $3 billion in research, development, and capital expenditures to advance innovation and improve operational efficiency through digital and manufacturing advancements. Its strong financial position also allowed it to return more than 100% of its free cash flow to shareholders over the year.