On Friday, October 9, 2026, the Board of Directors of Lockheed Martin Corporation (NYSE: LMT) announced a quarterly dividend increase from $3.45 to $3.60 per share. The dividend is payable on December 31, 2026, to shareholders of record as of December 1, 2026. This represents a 4.35% increase over the previous quarterly dividend.
Current Dividend Yield and Income Impact
At the current price of $508.01, this dividend increase raises Lockheed Martin’s forward dividend yield to approximately 2.83%.
As an owner of 20 shares of Lockheed Martin, the recent dividend increase adds $8.94 to my projected annual net dividend income. I was expecting an increase of around 4%, so the announcement was in line with my expectations, and I’m happy to take it.
Long-Term Dividend Growth Track Record
Lockheed Martin is a Dividend Contender with a 22-year streak of consecutive dividend increases. Dividend growth rates for 1, 3, 5, and 10 years are 4.7%, 5.4%, 6.4%, and 8.1%, respectively, according to Dividend Champions data.
Annual growth picture
This marks the sixth 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 $3.60 per share, representing a cumulative increase of 38.5%.
At the time of writing, LMT’s weight in my portfolio is about 0.99%, and its share of future annual dividend income is approximately 0.75%.
Following this increase, my yield on cost is 4.21%.
Quick Valuation Take
At the current share price, Lockheed Martin does not look particularly cheap, but the valuation appears reasonable for a high-quality defense company with a long history of dividend growth. The company benefits from a large backlog and long-term demand for its defense products and services, which provide a relatively stable foundation for future earnings and cash flow.
For a long-term dividend investor, I would be more comfortable adding to LMT at a lower valuation, but the current valuation does not change my view of the company as a solid income-producing holding.
Dividend Safety and Outlook
Lockheed Martin’s dividend remains well supported by earnings and free cash flow, with a payout ratio around 50%. This provides the company with a reasonable cushion while still leaving room to invest in the business and maintain its shareholder-return policy.
The main risks to future dividend growth are slower earnings growth, cost overruns or delays in major defense programs, and changes in U.S. defense spending priorities. While these factors could affect the pace of future increases, Lockheed Martin’s strong backlog, stable defense demand, and long dividend-growth history support the sustainability of the current dividend.
Overall, I consider LMT’s dividend safe, with continued mid-single-digit dividend growth a reasonable expectation over the long term.
Final Thoughts
This 4.35% dividend increase was right in line with my expectations and continues Lockheed Martin’s long record of rewarding shareholders. While the current yield is not particularly high, the combination of a strong dividend-growth record, dependable defense demand, and a well-covered dividend makes LMT a valuable long-term income holding in my portfolio.
I’m happy to continue holding Lockheed Martin and look forward to further dividend increases in the years ahead.
Summary of 2026 Dividend Increases / Cuts
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You can follow the development of my dividends here.
Full Disclosure: Long LMT
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