In case you hadn't noticed, IBD's Aerospace/Defense group is
well represented in the Dividend Leaders screen.Raytheon (
),General Dynamics (
in this space) andLockheed Martin (
) all make the cut, due in large part to a consistent track
record of dividend payouts.
In late September, Lockheed Martin raised its quarterly
dividend 16% to $1.33 a share. The dividend will be paid on Dec.
27 to shareholders of record Dec. 2. It currently yields a tidy
Early Tuesday, Lockheed reported better-than-expected earnings
and sales. Profit rose 14% from a year ago to $2.57 a share,
easily topping the consensus estimate by 31 cents. Sales of
$11.35 billion fell 4% to $11.35 billion, but also beat
Its aeronautics unit accounted for nearly one-third of total
revenue. Sales fell 2% from a year ago to $3.6 billion due to
fewer aircraft deliveries of its F-16 and F-22 jets. Higher sales
of F-35 fighter jets and C-130 and C-5 transport plans helped
offset the decline. The only unit to show a sales gain was
Missiles and Fire Control, up 3% to $2 billion on strength in air
and missile defense programs.
Despite uncertainty over future military spending, the company
generated $15 billion of orders in the third quarter and
increased its backlog to $78.7 billion.
Lockheed raised its full-year earnings outlook to $9.40-$9.70
share, better than its prior forecast of $9.20-$9.50. The current
consensus estimate is for $9.50, up 12%.
Lockheed rebounded nicely Tuesday after diving 3% in heavy
volume the prior day. It's back above its 50-day moving average
and is 1% off an all-time high, but several above-average volume
declines since Sept. 20 have caused its Accumulation/Distribution
Rating to slump to D. The stock is four weeks into a new
Northrop Grumman (
) reports Wednesday andRaytheon (
) reports Thursday.