• Lockheed Martin's dividend yield is above average at 2.9% and has been increased for 19 years in a row, a solid dividend income company.
• Lockheed Martin's total return outperformed the Dow average for my 60-month test period by 18.97%, which is good, and the present price presents a nice entry point.
• Lockheed Martin's three-year forward CAGR of 9% is good and will give you steady growth with the increasing worldwide economy and the world defense budgets.
• Recently Lockheed Martin announced the purchase of Aerojet Rocketdyne, a bolt-on company, for $4.2 billion that will increase the companies space program.

Lockheed Martin's (LMT), the largest manufacturer of military defense systems and other non-defense government systems, is a buy for the dividend income and total return growth investor. Lockheed Martin has good cash flow, and the company uses some of the cash to expand its product line. The remainder of the cash is used to increase dividends each year and buy back shares raising the stock price. Lockheed Martin is 1.0% of The Good Business Portfolio, being my IRA portfolio of good business companies that are balanced among all styles of investing. I want to add to this starter position whenever cash is available at this good entry point.

As I have said before in previous articles.

I use a set of guidelines that I codified over the last few years to review the companies in The Good Business Portfolio (my portfolio) and other companies that I am reviewing. For a complete set of guidelines, please see my article "The Good Business Portfolio: Update to Guidelines, March 2020". These guidelines provide me with a balanced portfolio of income, defensive, total return, and growing companies that hopefully keeps me ahead of the Dow average.

When I scanned the five-year chart, Lockheed Martin has a fair chart going up and to the right for 2015- 2020 YTD with two weak years of 2018 and 2020 YTD. The present entry point has an excellent upside potential of 40%, as indicated by the fundamentals below.

Data by YCharts

The method I use to compare companies is to look at the total return. If a company cannot beat the market, why do you want to invest in it? The good Lockheed Martin total return of 87.14% (down almost 40% from my last report in January 2020) compared to the Dow base of 68.17% makes Lockheed Martin a good investment for the total return investor that also wants a steadily increasing income. Looking back five years, $10,000 invested five years ago would now be worth over $19,500 today. This gain makes Lockheed Martin a great investment for the total return investor looking back, which has future growth as the United States and worldwide economy continues to grow with the increasing defense budgets.

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