Lockheed Martin Corporation (LMT): A Dividend Stock Built for Buy and Hold Investors

Lockheed Martin Corporation (NYSE:LMT) is included among the 10 Best Dividend Stocks to Buy and Hold Forever.

Lockheed Martin Corporation (NYSE:LMT) is a well-established defense contractor with long-term agreements covering a wide range of products, including fighter jets, aircraft, missiles, weapons systems, helicopters, and satellite-based space systems.

In the second quarter of 2025, Lockheed Martin Corporation (NYSE:LMT) posted mixed financial results. Net profit for the period ending June 29 stood at $342 million, reflecting a decline of nearly 80% due to a $950 million loss tied to a classified program. Despite this setback, Lockheed Martin expects its free cash flow for the year to reach at least $6.6 billion, more than twice the amount it distributes in cash dividends.

Lockheed Martin Corporation (NYSE:LMT) remained committed to its shareholder obligation, returning $1.3 billion to investors through dividends in the most recent quarter. In addition, the company has raised its payouts for 22 years in a row and currently offers a quarterly dividend of $3.30 per share. With a dividend yield of 3.14% as of July 31, LMT is among the best dividend stocks to buy and hold.

While we acknowledge the potential of LMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.