#5 - Lockheed Martin (NYSE:LMT)
Lockheed Martin Corp. (NYSE: LMT) is a good example of a low beta stock that helps underscore the difference between price and value. LMT stock trades for over $465 a share, which may feel expensive to many investors. However, this leader in the defense and aerospace sector trades at around 17x earnings and has grown an average of 8% in the last five years.
That goes along with a dividend that yields 2.7% and has been increasing for 21 consecutive years. Plus, the dividend payout ratio is 36% and well covered by earnings, which analysts predict will grow by 8% in the next 12 months.
Lockheed Martin receives 10% of Pentagon spending, and 50% of its annual revenue comes from the Department of Defense. While there may be some budget cuts in coming years, geopolitical concerns will likely insulate the defense sector as it has for the past 70 years.
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
- $565.18
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 9 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $553.43 (2.1% Downside)
