Lockheed Martin Corporation

LMT
Industrials
$506.58
2.72%Fair Value

Lockheed Martin Corporation (LMT) is a Industrials company that currently yields 2.72% — trading near fair value based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $416.84 and the overvaluation threshold at $540.72. 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. $416.84Overval. $540.72

Distance to undervalued

Waiting for a better entry

Needs about 17.7% downside to reach the Weiss buy zone

Undervaluation starts near $416.84, where the annual dividend would imply roughly 3.31% yield. That is 0.59% above today's yield.

Buy-zone price

$416.84

Target yield

3.31%

Research checklist

What to clear before buying the yield

Updated Oct 7, 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

2026-10-06 → 2026-10-07

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

Why Now?

Lockheed Martin Corporation is trading at a fair valuation relative to its dividend history.

Current yield 2.7% vs historical max 6.0% (45% 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 neutral here: quality has to do more of the work than entry price.

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

$290

Year 10 Income

$706

Yield on Cost

7.42%

Total Income

$4,648

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

Track actual vs. projected

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Dividend income log · Yield on cost · DRIP cost basis · Tax reports

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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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$506.58
Annual Dividend$13.80
Current Yield2.72%
Yield — Max (10Y)6.02%
Yield — Min (10Y)2.63%
Undervalued Below$416.84
Overvalued Above$540.72
Payout Ratio50.31%
CAGR Dividend 5Y6.4%
CAGR Dividend 10Y8.1%
Years No Cut14y

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14
consecutive years of dividend growth