Lockheed Martin Corporation
LMTLockheed Martin Corporation (LMT) is a Industrials company that currently yields 2.53% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $401.54 and the overvaluation threshold at $524.19. Lockheed Martin Corporation holds a quality score of 52/100 (Average), reflecting 14 consecutive years of dividend growth with a 65% payout ratio. The 5-year dividend CAGR stands at 6.4%.
LMT Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 24.7% downside to reach the Weiss buy zone
Undervaluation starts near $401.54, where the annual dividend would imply roughly 3.36% yield. That is 0.83% above today's yield.
Buy-zone price
$401.54
Target yield
3.36%
Research checklist
What to clear before buying the yield
Updated May 25, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
65%Earnings coverage leaves room for noise.
Cash payout
80%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
2026-05-23 → 2026-05-25
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 2.5% vs historical max 6.1% (42% of maximum).
14 consecutive years without a dividend cut.
Reasonable payout ratio of 65%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 52/100 quality score says the headline yield needs extra skepticism.
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
$269
Year 10 Income
$641
Yield on Cost
6.72%
Total Income
$4,265
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗LMT Dividend Quality Score
Quality Score
Average
Key Metrics
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In-depth analysis
→ LMT Dividend Analysis Article