Lockheed Martin (LMT) DIvidends Date & History

Key Takeaways

• Lockheed Martin offers a forward dividend yield of 2.32%, providing steady income for investors.
• Quarterly dividend stands at $3.45 per share, with the most recent ex-dividend date on March 2, 2026, and payment on March 27, 2026.
• The company has raised its dividend for 23 consecutive years, averaging about 5% annual growth recently.
• Payout ratio of 62% indicates strong sustainability, well-covered by earnings and free cash flow.
• LMT's yield exceeds key defense peers like NOC (1.39%) and others in the sector.
• Projected 2026 free cash flow of $6.5–6.8 billion comfortably covers the annual dividend obligation of around $3 billion.

Dividend Overview

Lockheed Martin Corporation (LMT), a leading aerospace and defense contractor, maintains a robust quarterly dividend policy. The current quarterly payout is $3.45 per share, annualizing to $13.80 forward, yielding approximately 2.32% based on recent stock prices. Payments occur every three months, with the latest declaration on February 6, 2026, for an ex-date of March 2, 2026, and payment on March 27, 2026. This positions LMT as a dividend growth stock, characterized by consistent raises over two decades rather than ultra-high yields. Its profile appeals to investors seeking reliable income backed by the company's dominant position in defense, supported by long-term government contracts and a massive backlog.

Dividend History and Growth

Lockheed Martin's dividend has grown steadily without interruption for 23 years, reflecting disciplined capital allocation. Annual totals progressed from $11.40 in 2022 to $12.15 in 2023 (+6.6%), $12.75 in 2024 (+4.9%), and $13.35 in 2025 (+4.7%), with 2026 starting at $3.45 quarterly. Recent hikes include a 5% increase to $3.45 in late 2025. This consistency stems from strong cash generation in its aeronautics, missiles, rotary systems, and space segments, enabling annual adjustments typically in the 4-6% range over the past five years. No cuts have occurred in decades, underscoring a shareholder-friendly strategy amid stable defense spending.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is solid, with a trailing payout ratio of 62.12%, leaving ample room for growth and reinvestment. Earnings per share comfortably cover payments, while trailing twelve-month levered free cash flow (FCF) reached $5.28 billion, more than twice the annual dividend outlay. For 2026, management guides FCF to $6.5–6.8 billion, easily funding the ~$3 billion dividend while supporting buybacks and R&D. Moderate debt levels and a $194 billion backlog further bolster financial stability, mitigating cyclical risks in defense.

Dividend Compared to Industry Peers

In the aerospace and defense sector, LMT's 2.32% forward yield outpaces peers like NOC at 1.39% and others averaging 1.4–1.8%. Compared to RTX and GD, which offer similar growth profiles but lower yields, LMT provides a competitive edge for income seekers. Its superior streak and coverage make it a standout, though all benefit from geopolitical tailwinds.

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Is This Stock Attractive for Dividend Investors?

Lockheed Martin suits conservative dividend growth investors prioritizing reliability over high yields. Its 23-year streak and 2.3% payout appeal to those building long-term income portfolios, especially amid rising defense budgets. Income-focused holders may value the quarterly cadence and FCF coverage, offering resilience in uncertain markets. However, sector sensitivity to government spending and policy shifts warrants caution for yield chasers seeking 4%+ returns. Growth-oriented investors could appreciate modest appreciation potential alongside dividends. Balanced portfolios might allocate modestly, complementing higher-yield names, but volatility from contract awards and geopolitics requires monitoring. Overall, LMT fits patient, quality-conscious dividend strategies without aggressive income demands.

Disclaimer

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