Why Lockheed Martin Corporation (LMT) is Considered a Safe Haven for Dividend Investors

Lockheed Martin Corporation (NYSE:LMT) is included among the 10 Best Recession Proof Dividend Stocks to Buy.

Lockheed Martin Corporation (NYSE:LMT) is an American defense and aerospace manufacturer whose business largely comes from the federal government. Its projects include combat aircraft like the F-35, missile defense systems, military helicopters, and satellite technologies.

Since defense and military strength remain central to national security, governments consistently allocate substantial budgets to this area. Lockheed Martin Corporation (NYSE:LMT)’s scale, long-standing reputation, and trusted partnerships with the US government have secured it a strong backlog of contracts, ensuring revenue visibility for years ahead.

Although defense spending can fluctuate, Lockheed Martin Corporation (NYSE:LMT) benefits from a solid baseline of funding and a diverse portfolio of projects, enabling it to maintain steady profits largely independent of broader economic cycles. In addition, the company boasts a strong dividend history, having raised its payouts for 22 consecutive years. Its quarterly dividend comes in at $3.30 per share and has a dividend yield of 2.71%, as of September 26.

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.