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Lockheed Martin (NYSE:LMT) - Dividend Idea Of The Day With 4.95% Yield

Weekly Dividend Stock Ideas Researched by The Dividend Yield Weekly. Our weekly Dividend Idea is the aerospace and defense related stock Lockheed Martin (LMT). The company is estimated at $84.0 by Morningstar which represents a downside of 9.4%. LMT has a 7/10 rating and is an attractive dividend growth stocks with big values. The company raised dividends over 10 consecutive years and raised dividends in average with a double-digit yield. The payout is only at 43.9% at twelve-trailing month basis. The strong cash flow of $4.3 billion from last fiscal year is a solid basis for further dividend hikes. In 2011, the company paid $1.1 billion in dividends and bought $2.5 billion own shares. We like the strong cash flow of LMT and the high exposure to the U.S. economy (85% of sales are generated in the United States) as well as the networking to the government. This could be also a big burden if the U.S. government cuts military budgets due to financial spending problems. It could also an accelerator if the budgets would be raised in the long-run. In addition, we see the company as a highly profitable early stage commodity trader. LMT is one of the largest military supplier.

Lockheed Martin Corporation is a global security and aerospace company principally engaged in the research, design, development, manufacture, integration, and sustainment of technology systems and products. The Company also provides a range of management, engineering, technical, scientific, logistic, and information services. It serves both domestic and international customers with products and services that have defense, civil, and commercial applications, with its principal customers being agencies of the United States Government. It operates in four segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions (IS&GS), and Space Systems. During the year ended December 31, 2011, the Company acquired QTC Holdings Inc. (QTC), which provides outsourced medical evaluation services to the United States Government, and Sim-Industries B.V., a commercial aviation simulation company. In April 2011, the Company closed on the sale of Pacific Architects and Engineers, Inc. More at Reuters here. 36.2% of sales are generated fom electronic systems, 32.5 from aeronautics. 

Lockheed Martin (NYSE:LMT) has a market capitalization of $30.16 billion. The company employs 123,000 people, generates revenue of $46,499.00 million and has a net income of $2,667.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,903.00 million. The EBITDA margin is 10.54 percent (operating margin 8.56 percent and net profit margin 5.74 percent).

Financial Analysis: The total debt represents 17.04 percent of the company’s assets and the total debt in relation to the equity amounts to 645.35 percent. Due to the financial situation, a return on equity of 118.59 percent was realized. Twelve trailing months earnings per share reached a value of $8.54. Last fiscal year, the company paid $3.25 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.89, P/S ratio 0.65 and P/B ratio 29.95. Dividend Yield: 4.96 percent. The beta ratio is 0.93.


Long-Term Stock History Chart Of Lockheed Martin C... (Click to enlarge)
Long-Term Dividends History of Lockheed Martin C... (LMT) (Click to enlarge)
Long-Term Dividend Yield History of Lockheed Martin C... (NYSE: LMT) (Click to enlarge)

Here is a short overview of the best yielding competitors:


Raytheon Company (RTN) has a market capitalization of $18.22 billion. The company generates revenue of $24,857.00 million and has a net income of $1,897.00 million. The firm’s EBITDA amounts to $3,304.00 million. The EBITDA margin is 13.29% (operating margin 11.49% and net profit margin 7.63%).

The total debt represents 17.81% of the company’s assets and the total debt in relation to the equity amounts to 56.29%. Last fiscal year, a return on equity of 20.82% was realized. Twelve trailing months earnings per share reached a value of $5.75. Last fiscal year, the company paid $1.72 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 9.55, Price/Sales 0.73 and Price/Book ratio 2.27. Dividend Yield: 3.64%. The beta ratio is 0.71.

Northrop Grumman (NOC) has a market capitalization of $17.01 billion. The company generates revenue of $26,412.00 million and has a net income of $2,086.00 million. The firm’s EBITDA amounts to $3,775.00 million. The EBITDA margin is 14.29% (operating margin 12.40% and net profit margin 7.90%).

The total debt represents 15.54% of the company’s assets and the total debt in relation to the equity amounts to 38.20%. Last fiscal year, a return on equity of 17.55% was realized. Twelve trailing months earnings per share reached a value of $7.80. Last fiscal year, the company paid $1.97 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 8.82, Price/Sales 0.64 and Price/Book ratio 1.69. Dividend Yield: 3.21%. The beta ratio is 1.10.

General Dynamics (GD) has a market capitalization of $23.32 billion. The company generates revenue of $32,677.00 million and has a net income of $2,552.00 million. The firm’s EBITDA amounts to $4,418.00 million. The EBITDA margin is 13.52% (operating margin 11.71% and net profit margin 7.81%).

The total debt represents 11.27% of the company’s assets and the total debt in relation to the equity amounts to 29.70%. Last fiscal year, a return on equity of 19.23% was realized. Twelve trailing months earnings per share reached a value of $6.85. Last fiscal year, the company paid $1.88 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 9.64, Price/Sales 0.71 and Price/Book ratio 1.77. Dividend Yield: 3.11%. The beta ratio is 1.24.

L-3 Communication (LLL) has a market capitalization of $6.98 billion. The company generates revenue of $15,169.00 million and has a net income of $968.00 million. The firm’s EBITDA amounts to $1,801.00 million. The EBITDA margin is 11.87% (operating margin 10.30% and net profit margin 6.38%).

The total debt represents 26.62% of the company’s assets and the total debt in relation to the equity amounts to 62.17%. Last fiscal year, a return on equity of 14.24% was realized. Twelve trailing months earnings per share reached a value of $9.05. Last fiscal year, the company paid $1.80 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 8.00, Price/Sales 0.46 and Price/Book ratio 1.08. Dividend Yield: 2.77%. The beta ratio is 0.96.

The Boeing Company (BA) has a market capitalization of $54.02 billion. The company generates revenue of $68,735.00 million and has a net income of $4,011.00 million. The firm’s EBITDA amounts to $6,888.00 million. The EBITDA margin is 10.02% (operating margin 8.50% and net profit margin 5.84%).

The total debt represents 15.47% of the company’s assets and the total debt in relation to the equity amounts to 351.95%. Last fiscal year, a return on equity of 127.72% was realized. Twelve trailing months earnings per share reached a value of $5.77. Last fiscal year, the company paid $1.70 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 12.46, Price/Sales 0.77 and Price/Book ratio 15.01. Dividend Yield: 2.48%. The beta ratio is 1.23.

Honeywell (HON) has a market capitalization of $46.99 billion. The company generates revenue of $36,529.00 million and has a net income of $1,865.00 million. The firm’s EBITDA amounts to $3,547.00 million. The EBITDA margin is 9.71% (operating margin 6.25% and net profit margin 5.11%).

The total debt represents 18.98% of the company’s assets and the total debt in relation to the equity amounts to 69.91%. Last fiscal year, a return on equity of 17.31% was realized. Twelve trailing months earnings per share reached a value of $2.66. Last fiscal year, the company paid $1.37 in form of dividends to shareholders.

Here are the price ratios of the company: The P/E ratio is 22.67, Price/Sales 1.29 and Price/Book ratio 4.32. Dividend Yield: 2.47%. The beta ratio is 1.35.

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* I am long LMT and RTN. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

The stock analysis, including the rating and up/down potential, is based on historical information and provided by several data provider like Thompson Reuters, Morningstar, GoogleFinance, YahooFinance and MSN. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Material presented here is for informational purposes only. Before buying or selling a security, you should do your own research and reach your own conclusion.