Summary
- Lockheed Martin is a major aerospace and global security company that provides a diversified range of aerospace, arms, defense, security, and advanced technology systems.
- Lockheed Martin also has a track record of innovations, registered patents, and obtaining highly specialized/multi-year contracts reflected by its high net profit margins and impressive returns.
- Furthermore, the company is expecting solid forward growth across all of their divisions, is at an appealing valuation, and is positioned to have strong dividend growth moving forward.
- Taken together, I believe that Lockheed Martin offers a defensible dividend at an attractive valuation which could make an appealing dividend investment.
Lockheed Martin (NYSE: LMT) is one of the largest corporations operating in the aerospace, security, technologies and military support industries. The company has a history of innovation and leadership in the aerospace industry, including through their numerous patents, development of next generation technologies and has also received the Collier Award eight times. Furthermore, Lockheed Martin has a history of steady financial growth, is expecting continued growth across all of their business segments and boasts an extremely efficient and diversified business.
Source: Created by author using data from Seeking Alpha Financials and gurufocus.
However, despite these operational strengths of the company, Lockheed Martin has recently experienced a significant decline in share price. I believe that this decline could present an opportunity to acquire a potentially undervalued, diversified and dependable long term dividend investment.
The Core Business Performance
Lockheed Martin is an aerospace and global security company that is involved in the research, design, manufacturing and integration of aerospace, arms, defense, security and advanced technology systems. The company provides a diversified range of technical, scientific, engineering, logistics, system integration and cybersecurity services through the following four divisions:
Aeronautical: The aeronautics division is involved in the R&D, support and upgrading of advanced military aircrafts including combat aircrafts and unmanned air vehicles.
Missiles and Fire Control: The missile and fire control division develops missile defense systems; air-to-ground precision strike weapon systems, various tactical missiles, fire control systems and ground vehicles.
