Lockheed Martin Corporation (LMT) manufactures the F-35 Joint Strike Fighter that is on its way to replace F-15 and F-16 planes, supplying air power to the U.S. Air Force, the Marines, the Navy and several other countries, growing its sales along with its dividend, says Gary Bradshaw, Senior Vice President and Portfolio Manager at Hodges Capital Management.
“Here’s a company that today yields 4.43%, that raised their dividend 15% in 2012, and I think they will raise it at least 10% this September. So you have a 4.43% yield today, they’ll earn around $9 a share, and the stock is at $103.67, so it trades at 11.5 times earnings,” Bradshaw said.
FOR MORE INFORMATION ABOUT THIS INTERVIEW CLICK HERE.
Bradshaw expects the defense company to grow despite sequestration, and he highlights the company’s strategy to return cash to shareholders as another reason to invest in the company.
“In addition, Lockheed is buying in shares each year, so their share count is obviously getting smaller. We think Lockheed could trade 13 times earnings, so we see appreciation in the share price. We think it could go to $130 over the next 12 months or 18 months, but we see the dividend increasing on top of the 4.43% yield, and it should continue to be a very good total-return vehicle,” Bradshaw said.
Lockheed Martin Corporation (LMT) Focuses on Strong Dividend Yield
August 04, 2014
Lockheed Martin Corporation (LMT) to Grow Dividend and Repurchase Stock
October 16, 2015
Lockheed Martin (LMT), Raytheon (RTN) and Northrop Grumman (NOC) Attract Investors with Yield Despite Defense Budget Uncertainty
November 09, 2012
Harris & Harris (TINY) Adiabatic Quantum Computers Bought by Google (GOOG) and Lockheed (LMT); Management Buys Stock
July 01, 2013
Spirit Realty Capital, Inc. (SRC) CEO Expects Substantial Growth for Net-Lease REITs
December 23, 2015
