Retirement Stock Portfolio: 7 Safe Dividend Stocks To Invest In

2. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 58

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 garnered interest from investors, as defense contractors are often viewed as stable investment options. This stability is largely attributed to the US government, a dependable client, and the steady nature of defense budgets, which typically remain consistent even in economic downturns. In addition, increasing global geopolitical tensions are driving higher defense spending, with funds directed toward replenishing equipment used in conflicts and addressing growing security concerns. Of particular note is Lockheed Martin’s missiles and fire control division, which is projected to be the fastest-growing segment in the years ahead and also delivers the highest profit margins. Since the start of 2024, the stock has surged by over 7.5%.

Lockheed Martin Corporation (NYSE:LMT) is one of the best dividend stocks for a retirement stock portfolio as it is expected to maintain its dividend in the coming years, supported by robust cash flow generation. In the most recent quarter, the company reported $2.4 billion in operating cash flow and $2.1 billion in free cash flow. During this period, it returned $1.6 billion to shareholders through dividends and share repurchases. It pays a quarterly dividend of $3.30 per share and has a dividend yield of 2.7%, as of December 17. The company maintains a 22-year track record of consistent dividend growth.

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.”

According to Insider Monkey’s Q3 2024 data, 58 hedge funds held positions in Lockheed Martin Corporation (NYSE:LMT), an increase from 56 in the prior quarter. The total value of these holdings amounted to approximately $2.4 billion. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.