BETHESDA, Md. - Lockheed Martin (NYSE: NYSE:LMT) has announced an increase in its quarterly dividend and an expansion of its share repurchase program. The defense contractor's board of directors has approved a fourth-quarter dividend of $3.30 per share, up $0.15 from the previous quarter, marking the 22nd consecutive year of dividend growth for the company. The dividend is set to be distributed on December 27, 2024, to shareholders on record as of December 2, 2024.
In addition to the dividend increase, Lockheed Martin's board has also authorized the repurchase of up to an additional $3 billion of its common stock. This decision brings the total authorization for future repurchases to approximately $10 billion. The company has stated that the number of shares to be bought back and the timing of these purchases will be determined by management and are subject to legal and regulatory guidelines.
Lockheed Martin, headquartered in Bethesda, Maryland, operates as a global defense technology company. It focuses on innovation and the advancement of scientific discovery, providing solutions across all domains of defense and promoting its vision of 21st Century Security®. The company aims to deliver transformative technologies to maintain a strategic advantage for its clients.
The increase in dividend payments and the expanded share buyback program reflect Lockheed Martin's commitment to delivering value to its shareholders. These financial strategies are commonly used by corporations to return capital to shareholders and can have implications for investor sentiment and stock performance.
The information for this report is based on a press release statement from Lockheed Martin.
In other recent news, Lockheed Martin was selected by NASA to construct next-generation GeoXO Lightning Mapper (LMX) instruments for NOAA's future weather satellites. The initial contract is valued at around $297 million. The technology is designed to enhance the detection and analysis of lightning events, providing crucial real-time data for severe weather monitoring.
Meanwhile, the Philippines' military modernization program has attracted global defense contractors such as Lockheed Martin, Saab, and Rafael. The country has committed $35 billion over the next decade to bolster its military capabilities. This development has drawn attention from international defense firms due to strategic issues involving China.
In the defense industry, U.S. Senator Elizabeth Warren has initiated an inquiry into resistance to a proposed 'right to repair' bill. Major defense contractors like Lockheed Martin and Boeing (NYSE:BA) could be affected by this legislation. The bill aims to allow the U.S. military to maintain its equipment independently.
On the international front, the United States is preparing to deliver a $375 million military aid package to Ukraine in response to intensifying conflict. This is a significant increase from recent months' assistance levels. The aid includes patrol boats, extra ammunition, and various other weapons.
In recent developments, China has imposed property freezes on nine American firms, including Sierra Nevada Corporation and Stick Rudder Enterprises LLC, in response to U.S. arms sales to Taiwan. This move aims to pressure the United States to cease arms dealings with Taiwan. Lockheed Martin has previously been targeted by China for similar reasons.
InvestingPro Insights
Lockheed Martin's recent dividend increase and share repurchase program expansion align with its strong financial position and commitment to shareholder returns. According to InvestingPro data, the company's market capitalization stands at an impressive $143.78 billion, reflecting its significant presence in the Aerospace & Defense industry.
InvestingPro Tips highlight that Lockheed Martin has raised its dividend for 21 consecutive years, a streak that continues with this latest announcement. This consistent dividend growth is complemented by the company's solid financial performance, with revenue reaching $71.07 billion in the last twelve months as of Q2 2024, showing a 5.45% growth.
The company's profitability is evident, with a P/E ratio of 21.9 and an adjusted P/E ratio of 20.77 for the last twelve months as of Q2 2024. While these ratios suggest a premium valuation, they may be justified by Lockheed Martin's market position and consistent performance.
Investors should note that Lockheed Martin operates with a moderate level of debt and has been aggressively buying back shares, as pointed out by InvestingPro Tips. These actions, combined with the newly announced $3 billion share repurchase authorization, demonstrate management's confidence in the company's financial health and future prospects.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips for Lockheed Martin, providing a comprehensive view of the company's financial landscape and market position.
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