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Lockheed Martin raises dividend for 23 years amid Pentagon contracts but faces cash flow risks.

Market News
03 Oct 2026
24/7 Wall Street
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Neutral
Lockheed Martin raises dividend for 23 years amid Pentagon contracts but faces cash flow risks.

Lockheed Martin has increased its dividend for 23 consecutive years, supported mainly by U.S. government contracts. Despite a record backlog of $230.42 billion and strong free cash flow guidance for 2026, recent quarters revealed risks with negative cash flow due to fixed-price contract losses. The company is shifting away from risky fixed-price deals and relies heavily on government funding, which faces uncertainties from budget delays and potential shutdowns. Investors should watch upcoming contract awards and quarterly cash flow for signs of dividend stability or risk.

Lockheed Martin's stock price of USD 505.41 as of October 4, 2026, is closer to its 52-week low of USD 439.19 than its high of USD 676.70, showing a more conservative valuation despite its long dividend growth streak. The dividend yield stands at 2.73%, reflecting steady income potential amid the company's cautious shift away from fixed-price contracts. On Pluang, all orders are buys, indicating strong investor interest even as the stock's 1-day change is a slight decline of 0.02%.

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