Lockheed Martin increases dividend by 10%, but maintains a high valuation.

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Lockheed Martin Corporation announced a regular quarterly dividend of $0.182, a 10 percent increase from the prior rate of $1.65 per share. The dividend will be paid at the new higher rate on October 14, 2016, to shareholders of record at close of business on October 3, 2016. Listed in the table below are the quarterly dividend payments since 2010. Our analysis of Lockheed Martin as a Top 100 Dividend Stock candidate is listed below;

 

Date Quarterly Dividend
12/1/2016 1.82
8/30/2016 1.65
5/27/2016 1.65
2/26/2016 1.65
11/27/2015 1.65
8/28/2015 1.5
5/28/2015 1.5
2/26/2015 1.5
11/26/2014 1.5
8/28/2014 1.33
5/29/2014 1.33
2/27/2014 1.33
11/27/2013 1.33
8/29/2013 1.15
5/30/2013 1.15
2/27/2013 1.15
11/29/2012 1.15
8/30/2012 1
5/30/2012 1
2/28/2012 1
11/29/2011 1
8/30/2011 0.75
5/27/2011 0.75
2/25/2011 0.75
11/29/2010 0.75
8/30/2010 0.63
5/27/2010 0.63
2/25/2010 0.63

Analysis of Lockheed Martin is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 2.68 105
Dividend Growth (5 year VL) 19% 50
Trailing P/E 20.5 147
S&P Financial Rating A++ 40
Beta 0.80 75
Total Ranking #29 417

Additional Information;

Price 9/23/16 % Yield 5 Year Div. Growth Rate  SPS    2016 P/S Ratio 10 yr P/S Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$245.85 2.68% 19% 177.90 1.38 0.46 1.38 4.87% 2.47%

Final Analysis;

  • Lockheed Martin’s dividend yield is higher than that of the S&P 500 Index and is also trading at the top of its average historical dividend yield.
  • Lockheed Martin maintains a 5 year dividend growth rate of 19%.   This is lower than 5 other companies in the sector and ranks 50 among all companies.
  • Lockheed Martin is trading at the top of its average price/sales (P/S) range at 1.38.  From a relative valuation perspective, Lockheed Martin is overvalued based upon its historical trading history.
  • Lockheed Martin maintains a credit rating of A++. This is above investment grade, a positive.
  • Lockheed Martin maintains a beta of 0.80, higher than the average company.
  • Lockheed Martin’s total ranking is 29.

Based upon its high dividend growth rate and high credit rating, Lockheed Martin qualifies as one of our Top 100 Dividend Stocks.

Lockheed Martin Corp. Dividend Yield Chart (Click to enlarge)

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Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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