Lockheed Martin (LMT) DIvidends Date & History

Key Takeaways

• Consistent quarterly payer: LMT pays a dividend every quarter, backed by a track record of payments dating back to 1995.
• Attractive yield for the sector: The dividend yield is roughly 2.7%, which is relatively high among large aerospace and defense contractors.
• Long growth streak: Lockheed Martin has raised its dividend for roughly 24 consecutive years, supported by steady earnings and cash flow.
• Moderate payout ratio: The company pays out about half of its earnings as dividends, leaving room for future increases.
• Dividend growth investor appeal: A five-year average annual dividend growth rate near 6% makes the stock relevant to income and growth-focused investors alike.

Dividend Overview

Lockheed Martin, a leading aerospace and defense company, follows a straightforward quarterly dividend policy. In October 2026, the board approved a fourth-quarter dividend of $3.60 per share, an increase of $0.15 from the prior $3.45 quarterly rate. This brings the annualized payout to approximately $14.40 per share and translates to a dividend yield of roughly 2.7%. The next payment is scheduled for December 31, 2026, to shareholders of record on December 1, 2026.

Rather than being a high-yield stock, LMT is best classified as a dividend growth stock. Its yield is competitive within the defense sector, and the company has paired that income with dependable, single-digit-percentage annual increases over time. This profile tends to appeal to investors who value growing income streams over maximum current yield.

Dividend History and Growth

Lockheed Martin has paid dividends since 1995 and has raised its payout each year for roughly two decades, with the most recent increase extending the streak to about 24 consecutive years. The company typically announces one increase per year, most recently lifting the quarterly payment by about 4.3%.

Growth has been steady rather than aggressive. Over the past five years, the dividend has grown at an average annual rate of around 6.4%, while the ten-year annualized growth rate is roughly 8%. Total annual dividends per share have climbed from $11.40 in 2022 to $12.15 in 2023, $12.75 in 2024, and $13.35 in 2025, illustrating the consistent, compounding nature of the increases. There have been no dividend cuts during this period.

Dividend Sustainability and Payout Ratio

The dividend appears well covered by earnings and cash flow. The trailing payout ratio is approximately 51%, meaning the company distributes about half of its earnings as dividends. On a cash flow basis, the dividend consumes a smaller share, with the payout measured at roughly 39% of cash flow.

This moderate payout level provides a cushion that supports both the current dividend and future increases, even during periods of uneven earnings. The company also returns additional capital to shareholders through share repurchases, alongside its dividend program. While Lockheed Martin carries debt on its balance sheet, its strong free cash flow generation and the stability of its defense backlog support the sustainability of the dividend over time.

Dividend Compared to Industry Peers

Within the large-cap defense sector, Lockheed Martin's dividend profile stands out favorably. Its yield of approximately 2.7% is generally higher than that of peers such as NOC (Northrop Grumman) and GD (General Dynamics), and is competitive with RTX (formerly Raytheon Technologies). By contrast, BA (Boeing) does not currently pay a dividend.

This relative strength makes LMT one of the more income-oriented names among defense prime contractors, while its multi-decade growth streak reinforces its appeal relative to peers with shorter or less consistent increase histories.

AI Screener

Tickeron's AI Screener is an AI-powered stock and exchange-traded fund (ETF) discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener can help identify dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to streamline your search for dividend-paying opportunities.

Is This Stock Attractive for Dividend Investors?

Lockheed Martin may appeal primarily to dividend growth investors and long-term, income-oriented shareholders. Its roughly 2.7% yield, combined with a 24-year record of annual increases and a five-year growth rate near 6%, makes it a candidate for investors seeking a rising income stream rather than maximum immediate yield.

The stock could also suit conservative and buy-and-hold investors, given the stability provided by the company's defense backlog, strong free cash flow, and a moderate payout ratio that leaves room for continued increases. However, its yield is lower than that of many traditional high-yield or income-maximizing stocks, so investors prioritizing current income above all may find other names more suitable. As with any equity, the dividend depends on the company's continued financial performance, and total return includes both income and share-price movement.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations