Lockheed Martin dividend
MyStockButler's October 2026 analysis: Lockheed Martin pays $3.60 per share quarterly, or $14.40 per share annually at the latest rate. In 2025, free cash flow was $6,908 million versus $6,131 million paid to shareholders, so cash covered the dividend and other shareholder payments that year.
How much does Lockheed Martin pay shareholders?
The strategy shifted in 2026. In the first nine months of 2026, Lockheed Martin made no program share repurchases. On October 9, the board raised the quarterly dividend to $3.60. Management projected 2026 capital expenditure of $2,100–$2,300 million. That exceeded the $1,649 million spent in 2025.
The dividend starts at $14.40 per share in every case because the latest quarterly rate is $3.60. The base case rises to $15.00 in 2028 and $15.60 in 2029, close to the company’s steady history of annual increases. The bear case holds at $14.40 throughout, while the bull case reaches $15.60 and $16.80 as cash conversion improves despite planned investment.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 13.41 | 12.79 | 12.17 | 11.40 | 10.60 |
| − Share buybacks, per share | 12.85 | 15.47 | 23.89 | 29.86 | 14.73 |
| = FCF not paid out, per share | 3.33 | 2.42 |
What this means. The company's own free cash flow per share is higher because it does not subtract shares given to employees as pay; we subtract them because they reduce what each existing share owns.
How much would Lockheed Martin's dividend pay you?
$10,000 invested in Lockheed Martin at its 2.4% dividend yield (our report of October 23, 2026) pays $240.00 in the first year, before tax. If its dividend per share keeps changing 6.1% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $534.80, with $3,662.87 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Lockheed Martin's dividend covered by its cash?
The position improved in 2025. Payments to shareholders were $6,131 million. Free cash flow was $6,908 million. The company still paid shareholders most of that year’s cash, but the gap had narrowed sharply.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 6,908 | 5,287 | 6,229 | 6,132 | 7,699 |
| − Dividends paid | 3,131 | 3,059 | 3,056 | 3,016 | 2,940 |
| − Share buybacks | 3,000 | 3,700 | 6,000 | 7,900 | 4,087 |
| = Free cash flow not paid out | 777 | 672 | |||
| = Paid out more than the free cash flow | 1,472 | 2,827 | 4,784 | ||
| Paid out, % of free cash flow | 88.8% | 127.8% | 145.4% | 178.0% | 91.3% |
What this means. The “real free cash flow” measure is lower because it also counts stock-based pay as a cost, so the payout percentage is higher.
What is Lockheed Martin's dividend yield today?
| Today (Oct 23, 2026) | |
|---|---|
| Share price | 589.91 |
| P/E, last 12 months (calculated) | 21.0x |
| Dividend yield (calculated) | 2.4% |
What this means. Enterprise value is higher than market value because it adds the company's debt and subtracts its cash, showing what it would cost to buy the whole business.