Lockheed Martin: A Must Buy Dividend King
11/08/2012

In addition to elegant jets, giant aircraft bodies, Staggerwings, Supermarines and Falcons of the Aerospace world,

Online PR News – 08-November-2012 – St. Louis, MO – In addition to elegant jets, giant aircraft bodies, Staggerwings, Supermarines and Falcons of the Aerospace world, people are also attracted by the healthy dividend yields that the defense industry has to offer. In the long list of dividend paying aerospace stocks, Lockheed Martin (LMT) is our most preferred name.

The stock has a dividend yield of 4.91%. The company has a rich history with regards to dividend payments. From time to time, the company has been increasing its dividends. Around September end, the company increased its dividend from $1/ share to $1.15/share. The forward dividend yield of the stock came out to be 4.97%.

LMT has truly been a dividend king. The following chart shows the historical trend in dividends:Dividends have grown by almost 23.36% over the last 5 years. This quarter was a good one for LMT with robust cash flows and an improved operating margin. The company did not declare a CAPEX policy due to the uncertainty in the economic environment, as the issue of sequestration still remains unresolved. The company is trading at a forward P/E of 11x. With 7% per annum growth expected in earnings for the next 5 years and a solid dividend yield, the stock is recommended as a buy.

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