#1 - Lockheed Martin (NYSE:LMT)
Lockheed Martin Corp. (NYSE: LMT) is at the top of our list because it may be the pre-eminent defense contractor. Specifically, the world’s third-largest aerospace company receives approximately 10% of Pentagon spending, and 50% of its annual revenue comes from the U.S. Department of Defense (DOD).
A significant portion of that business comes via the F-35 program. Lockheed describes this program as The Centerpiece of 21st Century Global Security. That should help ensure investors have decades of revenue and earnings stability.
LMT stock has increased 28.8% in the last five years. However, factoring in Lockheed’s dividend (which the company has increased for 21 consecutive years) brings the total return on the stock during that time to 48.4%. That means $10,000 invested in LMT stock five years ago would now be worth $14,480.
Critics may point to a decline in the rate at which Lockheed has increased its dividend in the last few years. That is due to less free cash flow as the company invests in growth through the F-35 program and other initiatives. While traders may be inclined to stay away, the company remains a solid buy-and-hold for long-term investors.
About Lockheed Martin
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments.
Read More - Current Price
- $542.22
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $611.00 (12.7% Upside)
