On Thursday,
October 9th, Lockheed Martin Corporation (LMT) announced
that its Board of Directors approved a quarterly dividend increase
from $3.30 to $3.45 per share. The dividend is payable on December
30, 2025, to shareholders of record as of December 1, 2025. This
represents a 4.55% increase over the last quarterly dividend.
LMT’s board has also authorized the
purchase of up to an additional $2 billion of Lockheed Martin common
stock under its share repurchase program. With this increase, total
authorization for future repurchases under the share repurchase
program is approximately $9.1 billion.
At the current price of $501.25
(today’s open), this increase will raise LMT’s dividend yield to
2.75%.
Lockheed Martin is a Dividend
Contenders with a 21 year streak of dividend increases. Dividend
growth rates for 1, 3, 5 and 10 years are 4.9, 6.3, 7.2 and 8.8
(Dividend
Champions.xls)
As an owner of 20 shares of LMT, the
recent dividend increase adds $8.94 to my projected annual net
dividend income.
I had anticipated dividend growth of
around 6%, so this announcement came in slightly below my
expectations. Nevertheless, an increase is always welcome, and it’s
encouraging to see Lockheed Martin maintain its commitment to steady
dividend growth.
This marks the fifth dividend increase
I’ve received from Lockheed Martin since initiating my position in
January 2021. Over that period, the company’s quarterly dividend
has grown consistently from $2.60 to $3.45 per share, representing a
cumulative increase of 32.7%.
As of this writing, LMT represents
approximately 1.17% of my portfolio by weight and contributes around
0.77% to my projected annual dividend income.
Following this increase, my yield on
cost is 4.03%.
Summary of 2025 Dividend Increases /
Cuts
Click here
to see my portfolio holdings.
You can follow the development of my
dividends here.
Full Disclosure: Long LMT
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