While recent earnings forecast revisions created some near-term uncertainty, the underlying fundamentals present a more robust picture. A substantially expanded Pentagon contract and growing interest from institutional investors underscore the defense giant’s long-term strength. With a dividend payment imminent, the company’s order book appears fuller than ever, providing stability for a share price trading near record highs.
Institutional Investment and Dividend Timing Draw Attention
Recent filings with the U.S. Securities and Exchange Commission (SEC) reveal that professional investors are using the current consolidation phase to build positions. Perigon Wealth Management significantly increased its stake in Lockheed Martin by 13.7 percent, bringing its total holding to a value of nearly $9 million. This accumulation occurred just ahead of a key date for income-focused shareholders.
The corporation is set to distribute its quarterly dividend of $3.45 per share on Tuesday, December 30. Annualized, this payout amounts to $13.80 per share, which translates to a dividend yield of approximately 2.9 percent at current price levels. From a technical perspective, the area around $480 per share is currently serving as a support level. The combination of the impending dividend and a multi-year production backlog significantly limits downside risk for investors, whose focus now shifts to how efficiently the company can convert its massive order volume into profits in coming quarters.
Should investors sell immediately? Or is it worth buying Lockheed?
Pentagon Significantly Expands C-130J Program Framework
The primary stabilizer for the equity comes directly from the U.S. Department of Defense. The Pentagon has increased an existing framework contract for the C-130J “Super Hercules” transport aircraft by an impressive $10 billion. This expansion raises the total value of the agreement to $25 billion.
This decision provides Lockheed Martin with planning security well into the next decade, as production is now secured through approximately 2035. Customers for the aircraft include not only the United States but also international partners such as Germany, France, Australia, and Egypt. This long-term capacity utilization acts as a crucial counterbalance to recent concerns over short-term margin targets for 2025. The market is recognizing this substantial foundation: the stock is trading at around $483, only slightly below its 52-week high of $485.85.
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