Core Insights - Lockheed Martin Corp. (LMT) has approved a 5% increase in its quarterly dividend to $3.45 per share, marking the 23rd consecutive annual dividend hike [1][9] - The new annualized dividend rate is $13.80 per share, resulting in an annualized dividend yield of 2.72%, outperforming the S&P 500 average of 1.48% [2] - The board has authorized an additional $2 billion for share repurchases, bringing the total authorization under the repurchase program to $9.1 billion [2][9] Financial Performance - In the first half of 2025, LMT generated $1.61 billion in cash flow from operating activities, supporting the recent dividend increase decision [5] - As of June 29, 2025, LMT held $1.29 billion in cash and cash equivalents, with a nearly 2.3% year-over-year increase in sales during the same period [6] Market Position and Growth Drivers - Lockheed Martin maintains a strong presence across U.S. military branches and continues to secure major defense contracts, ensuring a consistent stream of orders [3] - A robust U.S. defense budget, with a proposed 13% increase to $1.01 trillion for fiscal 2026, is expected to drive significant order volumes for LMT's defense products, enhancing future revenue prospects [4] - As of June 29, 2025, LMT reported a strong backlog of $166.5 billion, supporting its ability to sustain dividend growth [4][9] Industry Comparisons - Other defense companies, such as Northrop Grumman Corp. and General Dynamics Corp., have also announced recent dividend increases, indicating a trend of rewarding shareholders within the industry [7][8]
Lockheed Boosts Shareholder Value With Buyback & 5% Dividend Hike