Founded in 1912, Lockheed Martin (LMT) has a well-documented history of both earnings and dividend growth. In fact, the company has been able to raise its dividend payout every year for the past decade, growing it at an average annual rate of 20.6%. Still, there are legitimate concerns regarding future growth. While budgetary pressures surrounding the U.S. government remain a risk, there are a few tailwinds that should mitigate much of this impact over the long term.
With a dividend history stretching back to the previous century and plenty of underappreciated growth drivers over the next few decades, investors can rest easy with Lockheed Martin's growth prospects and valuation. It looks like all of the major defense companies are trading at a discount to the market's current P/E of 21x. While there will be plenty of headline risk, the current valuation just doesn't match up with the earnings power of Lockheed Martin. Even with spending pressure from its main customer, there are still plenty of drivers that should keep earnings growth intact. It's a bit of a contrarian pick, but shares look like a value right now.
Source: Guru Focus
Related Articles:
- 5 Stocks With Strong Dividend Growth Metrics
- Are Defense Stocks Good Defensive Stocks?
- International Securities For A Diversified Income Portfolio
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks
Can Lockheed Martin Continue to Grow?
Posted by D4L | Friday, July 17, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Boring stocks to buy and hold almost always align with deeply established businesses. While they won’t offer the outstanding growth potentia...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
Linked here is a detailed quantitative analysis of Texas Instruments Inc. (TXN). Below are some highlights from the above linked analysis: C...
-
A great year for dividend growth stocks is one in which there are few dividend cuts and fewer companies that failed to raise their dividends...
-
Countless people dream of being able to pay their bills with the cash they receive from their investments. But it doesn't have to be jus...
-
Verizon (VZ -1.75%) pays one of the biggest dividends in the S&P 500. The telecom giant currently yields 6.5%. That's one of the top...
-
Dividend-paying stocks from low-risk, high-quality companies are a smart way to generate steady and reliable attractive income streams to re...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.