On Thursday, October 9th, Lockheed Martin Corporation (LMT) announced that its Board of Directors approved a quarterly dividend increase from $3.30 to $3.45 per share. The dividend is payable on December 30, 2025, to shareholders of record as of December 1, 2025. This represents a 4.55% increase over the last quarterly dividend.
LMT's board has also authorized the purchase of up to an additional $2 billion of Lockheed Martin common stock under its share repurchase program. With this increase, total authorization for future repurchases under the share repurchase program is approximately $9.1 billion.
At the current price of $501.25 (today's open), this increase will raise LMT's dividend yield to 2.75%.
Lockheed Martin is a Dividend Contenders with a 21 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 4.9, 6.3, 7.2 and 8.8 (Dividend Champions.xls)
As an owner of 20 shares of LMT, the recent dividend increase adds $8.94 to my projected annual net dividend income.
I had anticipated dividend growth of around 6%, so this announcement came in slightly below my expectations. Nevertheless, an increase is always welcome, and it’s encouraging to see Lockheed Martin maintain its commitment to steady dividend growth.
This marks the fifth dividend increase I’ve received from Lockheed Martin since initiating my position in January 2021. Over that period, the company’s quarterly dividend has grown consistently from $2.60 to $3.45 per share, representing a cumulative increase of 32.7%.
As of this writing, LMT represents approximately 1.17% of my portfolio by weight and contributes around 0.77% to my projected annual dividend income.
Following this increase, my yield on cost is 4.03%.
Summary of 2025 Dividend Increases / Cuts
Click here to see my portfolio holdings.
You can follow the development of my dividends here.
Full Disclosure: Long LMT
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