The Role of Lockheed Martin (LMT) in a Balanced Dividend Stock Portfolio

Lockheed Martin Corporation (NYSE:LMT) is included among the Best Stocks for a Dividend Stock Portfolio.

Lockheed Martin Corporation (NYSE:LMT) is an American defense and aerospace manufacturing company. It continues to channel significant resources into research and development, fueling innovation and strengthening its ability to deliver cutting-edge defense technologies that address shifting customer needs. For instance, the company is putting capital into next-generation programs such as America’s Golden Dome initiative. These efforts not only enhance its technological edge but also lay the groundwork for long-term growth in both cash flow and shareholder dividends.

Lockheed Martin Corporation (NYSE:LMT) maintains considerable flexibility within its portfolio. Its missile systems, now playing a growing role in US defense strategy, offer a steady source of momentum. Sales of upgraded F-16 fighter jets remain robust, and the potential revival of the F-22 program is often overlooked. At the same time, with international rivals struggling with production and cost challenges, the F-35 stands out as the only widely scalable fifth-generation aircraft option available to most nations.

Lockheed Martin Corporation (NYSE:LMT) has a strong dividend history. The company has been rewarding shareholders with growing dividends for the past 22 years and currently pays a quarterly dividend of $3.30 per share. The stock supports a dividend yield of 2.79%, as of September 18.

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.