Lockheed Martin Corporation (LMT), a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space Systems.
The company raised its quarterly dividend by 9.90% to $2/share. This marked the 15th consecutive annual increase for this dividend achiever. Over the past decade, the company has managed to boost distributions at a rate of 18.40%/year. This was supported by growth in earnings per share from $7.29 in 2007 to $12.42 in 2016. Lockheed Martin is expected to earn $12.64/share in 2017.
Currently, the stock is overvalued at 24.50 times forward earnings. The stock yields 2.60%.
The company has benefitted from share buybacks over the past decade. Lockheed Martin managed to reduce the number of shares outstanding from 416 million a decade ago to 291 million in the most recent quarter. Net income from continuing operations increased from $3 billion in 2007 to $3.753 in 2017. Earnings per share also received a large boost, because the valuations were very low a decade ago. Unfortunately, today shares are overvalued, but the company keeps buying them regardless of valuation. I believe that defense contractors are expensive at or above 20 times earnings. I would be interested in the stock when valuations are in the 15 – 16 times earnings range.
Relevant Articles:
- Dividend Achievers Offer Income Growth and Capital Appreciation Potential
- Lockheed Martin Corporation (LMT) Dividend Stock Analysis 2013
- Should Dividend Investors be Defensive about these stocks?
- How to value dividend stocks
Popular Posts
-
Back in 2017, I made a bet with Warren Buffett and my friends Carl over at 1500Days and Ben at Suredividend . Buffett does not know that...
-
Warren Buffett does not need any introduction. He is a very successful investor who is in charge of Berkshire Hathaway. He has an impressiv...
-
As part of my review process, I look at the dividend increases every week. I use the following resources to compile this list, if you are i...
-
In my monitoring process, I tend to analyze companies I own once every 12 to 18 months. However, I also receive push notifications such as a...
-
One of the most common questions I receive relates about the idea of how to invest a lump-sum amount. I believe that the answer is not a one...
-
I review the list of dividend increases as part of my monitoring process. This process helps me review how the companies I own are doing. It...
-
As a shareholder, there are two ways to make profits from a stock. The first way is when you sell your stock for a gain, after it has incr...
-
Warren Buffett is one of the world’s richest people. He is also one of the worlds most successful investors. He is one of the few individual...
-
The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years...
-
At the beginning of the 21st century most young people are told that social security won’t be there for them when they retire from the work ...
