Lockheed's Consistent Payouts Cement Its Role as a Dividend Leader

Lockheed Martin Corporation (NYSE:LMT) is among the best next generation dividend aristocrat stocks.

The company’s business segments produce substantial cash flow. After allocating funds toward research and capital investments, the company returns value to shareholders primarily through dividends and share buybacks.

Buybacks reduce the total number of shares available, which increases each remaining shareholder’s stake in the company. Over the past decade, Lockheed Martin Corporation (NYSE:LMT) has cut its outstanding shares by 21%.

This reduction supports dividend growth without requiring a proportionally larger total payout, since fewer shares need to be paid. Combined with rising free cash flow, this strategy has enabled the company to steadily increase its dividend per share, up 156% over the last 10 years.

Lockheed Martin Corporation (NYSE:LMT)’s dividend profile remains strong, with 22 consecutive years of dividend growth under its belt. The stock supports a dividend yield of 2.71%, as of June 14.

Lockheed Martin Corporation (NYSE:LMT) delivers comprehensive space and mission solutions, ranging from human spaceflight to strategic defense systems, helping its customers maintain a technological edge. The company equips military forces with advanced tools across the full spectrum of deterrence and in every domain, enabling them to counter emerging threats effectively.

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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