LMT Research
Lockheed Martin Corporation
2.69%
Forward yield
$13.800 / yr per share
Yield percentile (5y)
P 75
2.2% (P10)2.5% (med)2.8% (P90)
Quality score
93/100
Strong · Low payout risk
Annual / share
$13.800
Quarterly · next ex-date 08-31 (86d)
vs 5y P90 reference
+7%
$512.65 vs $475.64 (5y P90 price)
Refreshed 2026-06-06Data coverage High — 43y history
01Fundamentals
LMT offers a highly reliable dividend backed by a 43-year consecutive payment streak and exceptional payout safety with a 45.6% effective payout ratio. Despite a current dividend yield of 2.60% below risk-free rates, robust free cash flow coverage 2.19 times ensures dividend sustainability.
Bull caseThe company maintains outstanding payout safety with a 45.6% effective payout ratio and free cash flow covering dividends 2.19 times, supported by a 43-year dividend growth record and an exceptional ROE of 67.64%.
Bear caseThe primary risk is a heightened Debt/Equity ratio of 2.8×, though the strong $6,908,000,000 in Free Cash Flow provides a substantial buffer and a 2.60% dividend yield offers less immediate income than current risk-free alternatives.
02Risk & quality
| Payout ratio | Low · 45.6% |
| Overall quality score | 93 / 100 · Strong |
Score breakdown — five dimensions, each /2020 + 20 + 16 + 6 + 10 = 93
20.0/20
Consistency
20.0/20
Payout safety
16.0/20
Moat
↓
5.5/20
Growth rate
10.0/20
Balance sheet
- Consistency 20.0/20 — LMT has raised or maintained its dividend for 43 consecutive years, qualifying as a Dividend Aristocrat (25+ year streak). The dimension caps at 10 years, so 43 years comfortably clears the ceiling for full credit.
- Payout safety 20.0/20 — LMT returns 45.6% of free cash flow to shareholders as dividends — well inside the comfort zone. The 80% mark is where most analysts start watching payouts closely; anything above 100% would mean the dividend is being funded from cash or borrowing rather than current profit.
- Moat 16.0/20 — Scores how protected LMT's earnings stream is from competition. Operating in Industrials, LMT benefits from the kind of brand pricing power, regulatory position, or scale that lets margins hold up through economic cycles. Cyclical or commodity-driven sectors typically score in the single digits here.
- Growth rate 5.5/20 — LMT's dividend grew about 8.2% per year over 5 years — solid by absolute standards, but a notch below the 15-20% pace seen at growth-oriented dividend payers (think SCHD constituents). Familiar pattern for established staples already paying out most of what they earn — the runway for further hikes naturally narrows once payout ratios climb.
- Balance sheet 10.0/20 — A composite of return-on-equity and inverse leverage. LMT's 67.6% ROE and a 2.8× debt-to-equity ratio leaves this dimension in the middle of the pack — neither flagged for weakness nor in the financial-flexibility tier of top-scoring names.
03Price reference
$10,000at current price →$269/ yr in dividends
Math: 2.69% forward yield. Historical 5y DGR is 8.2%/yr — past growth does not guarantee future results.
Below are statistical price references from the last 5 years of trading, anchored to historical drawdown events. They describe where the price has been — not where it should be.
$326.56
$475.64
$512.65
5y P10
5y P90
Now
| Current price | $512.65 |
| 5y P90 reference (high-yield 10% tail) | $475.64 — 7.2% lower |
| 5y P10 reference (low-yield 10% tail) | $326.56 — 36.3% lower |
| 5y max observed yield (at P10 price) | 3.2% |
| Annual dividend (frozen forward) | $13.800 / share · 2.69% yield |
Historical anchor · 2008-10 Global Financial Crisis
Low $34.22 · drawdown 11 days · yield reached 5.3%
Lehman collapse triggered global credit freeze; S&P fell ~50% peak-to-trough.
Important — this is reference data, not investment advice.
Quality scores, percentiles, and price references are statistical summaries of historical data computed by our research methodology from public market data, refreshed daily. They do not constitute a buy / sell / hold recommendation, do not account for your personal financial situation, tax bracket, or goals, and past performance does not predict future results. Consult a registered investment advisor before making investment decisions. divcalc.io is not a registered investment advisor.
Quality scores, percentiles, and price references are statistical summaries of historical data computed by our research methodology from public market data, refreshed daily. They do not constitute a buy / sell / hold recommendation, do not account for your personal financial situation, tax bracket, or goals, and past performance does not predict future results. Consult a registered investment advisor before making investment decisions. divcalc.io is not a registered investment advisor.