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. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters, surface ships, sea and land-based missile defense systems, radar systems, sea and air-based mission and combat systems, command and control mission solutions, cyber solutions, and simulation and training solutions. The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive missile systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground-based systems to help its customers gather, analyze, and securely distribute critical intelligence data. It serves primarily serves the U.S. government, as well as foreign military sales contracted through the U.S. government. Lockheed Martin Corporation was founded in 1912 and is headquartered in Bethesda, Maryland.
Among companies involved in the military industrial space, Lockheed Martin is really the biggest pure-play name you can buy. It has a huge $112.89 billion market cap and a fairly generous 2.64% dividend yield (the yield on the S&P 500 Index is a miserly 1.3% today). The dividend, meanwhile, has been increased annually for two decades.
Overview:
- Market Cap: 112.89B
- PE Ratio: 18.76
- EPS: 22.61
- Dividend Yield: 2.64%
- Analysts Rating: 7 Strong Buy, 3 Buy and 12 Hold ratings.
Lockheed Martin’s business spans four main divisions: aeronautics ($6.4 billion in first-quarter 2022 revenue), rotary and mission systems ($3.6 billion), space ($2.6 billion), and missile and fire control ($2.5 billion). Basically, it is a one-stop shop for military needs that has been built over time via acquisition and internal development. Given that the U.S. government is, essentially, its main customer, having a diversified list of products and the size to swallow up smaller players to expand into new areas is a core reason to like Lockheed Martin.
The entrenched position it holds is highlighted by its roughly $134 billion backlog of work. This number basically represents long-term contracts that Lockheed Martin has with the government that it will fulfill over time, and it provides a huge amount of consistency to its earnings. While any one quarter or year may fluctuate in an unpredictable way, the backlog provides a line of sight as to what investors should expect. If you want to own the biggest and best, Lockheed Martin has to be on your list in the defense sector.
Therefore, Lockheed Martin is a top defense stock to own for long term with stock price appreciation as well as dividend increase annually.