Lockheed Martin Corporation

LMT
Industrials
$563.57
2.42%Overvalued

Lockheed Martin Corporation (LMT) is a Industrials company that currently yields 2.42% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $407.88 and the overvaluation threshold at $534.02. Lockheed Martin Corporation holds a quality score of 65/100 (Good), reflecting 14 consecutive years of dividend growth with a 50% payout ratio. The 5-year dividend CAGR stands at 6.4%.

LMT Dividend Yield History — Weiss Valuation

Underval. $407.88Overval. $534.02

Distance to undervalued

Entry price is stretched

Needs 27.6% downside to reach the Weiss buy zone

Undervaluation starts near $407.88, where the annual dividend would imply roughly 3.35% yield. That is 0.92% above today's yield.

Buy-zone price

$407.88

Target yield

3.35%

Research checklist

What to clear before buying the yield

Updated Aug 23, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

50%

Earnings coverage leaves room for noise.

Cash payout

57%

Free cash flow coverage supports the payment.

Dividend growth

6.4%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-08-222026-08-23

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Lockheed Martin Corporation is trading near its historical overvaluation band.

Current yield 2.4% vs historical max 6.0% (40% of maximum).

14 consecutive years without a dividend cut.

Conservative payout ratio of 50%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 65/100 quality score calls for selective follow-up, not autopilot.

Start by checking whether payout coverage and business durability still support the dividend.

LMT Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$258

Year 10 Income

$606

Yield on Cost

6.33%

Total Income

$4,051

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

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Moat rating & analyst fair value

Morningstar ↗

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LMT Dividend Quality Score

Quality Score

65/ 100

Good

Payout Ratio20/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History0/15
FCF Coverage10/15

Key Metrics

Current Price$563.57
Annual Dividend$13.65
Current Yield2.42%
Yield — Max (10Y)6.03%
Yield — Min (10Y)2.64%
Undervalued Below$407.88
Overvalued Above$534.02
Payout Ratio50.33%
CAGR Dividend 5Y6.4%
CAGR Dividend 10Y8.1%
Years No Cut14y

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14
consecutive years of dividend growth